Transaction Details

Loan Amount: $19,300,000
Rate: 4.53%
Term: 25 Years Fixed
Amortization: 25 Years
LTV: 84%
Prepayment: 10 Year Stepdown
Recourse: Recourse
Lender Origination Fee: Par

Transaction Description

Summary: Continental Partners secured $19,300,000 in owner-user financing for a 256,000-sq.ft. industrial property in Moorpark, CA. The sponsor, a manufacturer of electronic devices, requested a high loan-to-cost, long-term fixed-rate product to finance the acquisition of their new headquarters.

Opportunity: This complex transaction required a unique financing solution to secure the most competitive terms for the Sponsor. The Sponsor wanted to own and occupy this industrial building for its operations, but had already withdrawn two SBA 504 loans in its name and maxed out the SBA financing allowance. Moreover, the sponsor was relocating from a 50,000-sq.ft. facility to this 256,000-sq.ft. warehouse; meaning it would initially occupy about 20 percent of the building. To qualify for many owner-user financing products, the subject property must be at least 51 percent owner occupied.

Result: Continental Partners was able to find a Lender who understood the asset, the market and the Sponsor’s business plan; as well as willing to go above their Regular SBA guidelines. This was the largest SBA loan closed by the lender, a prominent national bank, in their history.