Summary: Continental Partners arranged a $4,480,000 non – recourse loan to refinance a two property Class – A industrial portfolio in Valencia and Santa Ana, CA. Both properties were occupied by non – credit single tenants. The Sponsor, a high net worth family with a robust portfolio and over two decades of development experience was seeking an exceedingly aggressive rate and term refinance given the deal issues. The permanent loan was sized to a combined 58% LTV as is.
Opportunity: The challenge in this transaction was that both properties have single non – credit tenants with each having less than 3 years remaining on their respective leases. The Sponsor’s expectations were for a 10 year term amortized over 30 years, mid 3s fixed rate and non-recourse. It was a difficult task meeting all their requests. In addition, one of the properties was particularly difficult to comp out and prove value given the nature of the single tenant.
Result: Continental Partners was able to provide comparable sales as well as leased properties which were recognized by the Lender and stay within the Lender’s LTV threshold. The Lender that Continental Partners sourced closed the deal with a fixed rate of 3.55%, 10 year term, 58% LTV as is, amortized over 30 years, non – recourse, and par pricing. The Lender had nearly zero closing costs to the Sponsor and closed the transaction within 45 days of loan application. The Sponsor was very pleased with Continental Partners’ performance and granted access to finance the rest of their mortgage maturing commercial real estate portfolio.