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Commercial Real Estate Finance: Structured Financing

$11.5 million structured permanent financing for a 100,000 sf retail center in California, 85% occupied.  This 4 building mixed use retail center constructed in the 1980’s is anchored by a 20,000 s.f. hard goods retailer and includes a variety of uses including an Army recruiting center, and a distribution warehouse. The borrower is the original developer and continuous owner/manager. The financing involved cross-collateralization with another shopping center owned by the borrower. Both properties are at the end of major renovations that were financed with short-term repositioning loans arranged by Financial Compound.  This structured financing executes the borrower’s objective to refinance both shopping centers with long term, low fixed interest rate loans. This loan was structured with a holdback for leasing costs, and an additional earn out funding up to $14 million upon lease-up and stabilization.

Loan terms included 5.25% fixed interest rate, 10 year term, 30 year amortization, 75% stabilized LTV, no escrows for insurance.

Structured commercial real estate finance can be utilizied by borrowers to creatively implement their financial objectives.  Financial Compound is a well versed commercial mortgage broker with the various financial structures and product types to help borrowers customize and structure a commercial real estate finance solution.  Financial Compound processes and closes the tranasction, keeping the borrower’s paperwork and logistics to a minimum.