Transaction Details

Loan Amount: $74,000,000
Rate: 4.27%
Term: 5 years
Amortization: 3 years I.O.; 30 Years Thereafter
LTC: 75%
DCR: 1.30
Prepayment: Defeasance
Recourse: Non-Recourse
Lender Origination Fee: Par

Transaction Description

Summary: Continental Partners successfully arranged the $74,000,000 refinance of a construction loan to permanent finance secured by the Property known as Atlantic Times Square. The Property is a mixed use retail and multifamily development totaling 380,372 SF located in Monterey Park, California. The development is comprised of 213,812 SF of retail space and 100 multifamily units. The Loan has a five-year term and amortizes on a 30-year schedule. The Sponsor requested a non – recourse loan to refinance a large portion of the original construction loan. From start to finish the Loan closed in under 30 days.

Opportunity: A number of Lenders who were quoting the transaction came up with an undersized loan amount requiring the Sponsor to put in additional equity at the close of escrow. The bidding Lenders were concerned with rents the tenants were paying and had trouble underwriting the AMC movie theater as the anchor. Continental Partners approached numerous lenders including banks, CMBS lenders and life insurance companies, enabling the perfect match to be identified.

Result: Continental Partners completed a thorough market survey, confirming market rent comps to justify the take-out loan. Based on a comprehensive understanding of the Sponsor’s business plan and market research the Lender was able to commit to a larger loan amount than originally requested, which allowed the Sponsor to redirect equity into other projects. Continental Partners was able to find a Lender who understood the asset and the Sponsor’s business plan. The Lender reduced its debt yield below their hurdle of 8% in order to get to a loan amount that would replace a large portion of the construction loan.