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Sources of Financing
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Sources of FinancingPrime Retail, Inc. (410-234-0782) reached an agreement in principle with an affiliate of Fortress Investment Fund LLC for $71 million in mezzanine financing.The loans are on a three-year term secured by pledges of equity interests in certain outlet centers. They require fixed amortization each month and are pre-payable at any time after one year. The interest rate will be a floating rate based on one month LIBOR plus 950 points. Prime Retail will also sell Fortress four of its outlet centers for $240 million. The sale includes the assumption of $175 million in first mortgage debt. The centers being sold are located in Gilroy, CA; Michigan City, IN; Waterloo, NY and Kittery, ME. The deal is contingent on Prime Retail being able to find first mortgage financing for their Puerto Rico center.
Sanderhoff & Associates (630-629-0408) is offering loan programs for NNN and NN leased properties S&P-rated properties rated BBB or better. The maximum loan amount is 80% to 100% with competitive terms. The "build to suit" construction loans feature one application for construction and permanent loans and the purchase of credit tenant lease cash flow with a minimum of 15 to 20 years remaining on the lease. The loan could be greater than 100% LTV. The maximum loan amount is $1,000,000 and may proceed with debt service as low as 1.003x. Rates are based largely on the credit rating of the tenant. Retail anchor tenants and hotels/motels, resorts are eligible for funding in four to eight weeks.
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