The Madison Group (TMG), a leading national source for NNN property
financing, arranged the $6.2M non-recourse refinance of a portfolio of Comerica
Bank branches and a KFC.
The client that
had a CMBS loan coming due.
TMG was able
to secure financing with a 30-year amortization at 3.75% on a 5-year fixed rate
loan.
The client also has the option to
fix for an additional 5 years once the lease options had been signed.
The properties are located throughout the Texas metroplexes.
Most of the properties have a 5-year
remaining lease term. CMBS financing had
been put in place 5 years ago, as the real estate investment group had planned
on a shorter hold time.
The sponsors came to The Madison Group requesting a
non-recourse rate and term refinance loan.
They wanted a longer amortization to increase cash flow and the best
available rate. Due to the short nature
of the remaining leases, and the uncertainty in the market towards bank
branches, many lenders were not viable options for this refinance.
TMG sent the financing package to several of their trusted
lenders. Along with excellent rate and
terms, TMG also negotiated 3 years of interest only for the sponsors, along
with the ability to transport the debt to a new property, if any were sold
during the loan term. The cost of the
loan was significantly less than CMBS debt and closed as quoted with a nice
permanent loan in place.
Location: Texas
Property: Bank
locations along with a KFC
Loan Amount: $ 6,200,000
Interest Rate: 3.75%
Term: 10 Years
Amortization: 30 Years
Prepayment: 3/2/1 or
ability to transfer debt to another property
LTV: 60 %