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Sources of Financing
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Sources of FinancingWeathervane Retail Corporation (800-888-6461) received a $5 million equity investment led by LLR Equity Partners to fund the opening of 15 to 25 stores annually for the coming few years and to renovate its existing stores to a new 2,800 sq.ft prototype. The company, which operates 68 clothing stores catering to teenage girls in 15 states, also agreed to extend its $10 million working credit facility with Paragon Capital. In the last 18 months, the company opened 23 stores and renovated 10 more.
The Bank (205-327-3516) offers financing on a variety of commercial properties. For retail centers, the company requires a minimum pre-leasing requirement of 50% on credit-anchored centers generating a DSC ratio of .75x; on non-credit anchored centers, the pre-leasing requirement is 75% generating a breakeven debt service coverage ratio. Minimum stabilized DSC varies from 1.05x (freestanding credit requests) to 1.15x (credit anchored) based on a maximum 25 year amortization, and minimum DSC of 1.25x on non-credit shadow-anchored centers with a maximum 20-year amortization. Minimum equity on freestanding credit tenants is 5%, 10% on credit anchored centers and 20% on non-credit centers. Five years is the maximum term, and new construction loans or existing center loans are available. Pricing is LIBOR-based.
Aries Capital (770-395-3180) loaned $1.2 million to Cypress Creek, a 14,220 sq.ft., 1.21-acre shopping center located on Vineland Road in Orlando, FL. The acquisition loan was financed with a 10-year term and a 30-year amortization with an LTV ratio of 60%.
Johnson Capital Group (949-660-1998) arranged $22 million in acquisition financing for Brea Union Plaza, a 175,388 sq.ft. shopping center located in Brea, CA. Anchors include HomeLife, Nordstrom Rack and Staples.
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