|
Sources of Financing
|
|
|
Sources of Financing Martin Capital Group (270-354-6394) is offering loans from $2 million to $300 million for retail office and industrial/warehouse properties. The loans typically are coterminous with remaining lease term up to 25 years and with an amortization of 25 to 30 years. Interest rates are competitive and deal specific and the loans bear a maximum LTV of up to 100% and a minimum DSCR of 1.05x. Liability is nonrecourse and loan fees are deal specific from .5% to 1%. Prepayment typically is locked two to four years then yield maintenance or defeasance. Borrowers are obligated to pay normal and customary closing costs. Tenants currently being financed by the company include Albertson’s Ahold BJ’s Wholesale Club Home Depot Target Kohl’s Lowe’s and Wal*Mart. Cigna Investments (215-761-6128) made a $180 million permanent loan on FlatIron Crossing a 836 295 sq.ft. regional mall in Broomfield CO. The financing replaces construction loans put together by a consortium of banks headed by Bank of America. The deal was assembled with L.J.Melody & Company for Westcor the developer of FlatIron Crossing. Under the Cigna deal Westcor has a floating rate on a five-year term. L.J. Melody & Company also arranged financing totaling $100 million for Galleria at South Bay in Redondo Beach CA. The three-level 980 000 sq.ft. regional mall is anchored by Nordstrom Robinson-May and Mervyn’s and features more than 130 specialty shops. Cigna provided the financing on behalf of Forest City Enterprises Inc. American Realty Advisors (818-545-1152) on behalf of a pension fund client financed a $5.8 million mezzanine loan to Chino Hills LLC a California limited liability company. The loan in conjunction with a senior financing will be used for the acquisition and repositioning of Chino Hills Marketplace a 325 783 sq.ft. shopping center in Chino Hills CA. As part of the repositioning strategy Chino Hills LLC entered into a lease with Vons grocery store. The center also is tenanted by Kmart and Rite Aid. The Pinnacle Group (408-369-8244) is offering commercial mortgage rates below 7% for all property types. Commercial mortgage programs are fixed for five seven or 10 years. For retail properties the 10-year rate is 6.3% to 6.9% with a treasury spread of 200 to 300 a LTV of 75% a DCR of 1.25 and a maximum amortization of 30. The Upper Manhattan Empowerment Zone (212-788-7683) a federal state and city economic development program approved a $15 million loan for the East River Plaza retail complex in New York NY. The $160 million shopping center will be located in East Harlem and include a Costco and Home Depot. Blumenfeld Development Corporation and Canyon Capital Management are developing the center. |