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Acquisition Financing for Retail Anchor

Acquisition Financing – Shopping Center Loan

Financial Compound arranged a $4,800,000 permanent financing for the acquisition of a sporting goods anchored retail center in Ohio.  This anchor tenant was non-credit rated, and its lease rolled during the term of the loan.  Financial Compound was able to arrange for no leasing reserves taken up front or on-going through the loan, with only a springing leasing reserve account in the event that the anchor tenant gave notice of intent to vacate.  Financial Compound was also able to structure the loan to give the borrower a menu of choices for loan proceeds and years of interest only, with pre-determined impacts on the interest rate, with the borrower being allowed to chose the final loan terms up through the day before loan closing.

This is a 10 year loan with the first 5 years interest only and a 30 year amortization schedule thereafter.  Loan to value 71% and debt coverage ratio 1.20.  No lender fee, non-recourse.