The 10-tenant center was built in the 1980s and has been stably occupied. The borrower asked Financial Compound to seek a loan without hefty prepayment penalties or reserve requirements, as well as a thirty-day close to accommodate a short closing escrow driven by the seller’s 1031 exchange deadline. A unique aspect of this commercial real estate loan relates to this property being the only retail zoning within the property’s rural surroundings and the closest retail submarket having a vacancy rate of 15%.
Furthermore, a significant portion of the net rentable area’s tenants is on month-to-month leases. Loan terms included a 5.875% fixed interest rate for 5 years, thereafter floating at Prime plus 0.5% capped at 10.75% for another 5 years, with a 30 year amortization and prepayment provision of 3,2,1,0 and a 1/2% lender fee along with loan closing costs less than $4,000.Commercial mortgage broker Financial Compound has been the long standing mortgage broker for the seller who referred this transaction knowing our ability to deliver the financing in time to meet the seller’s short closing deadlines.
Financial Compound is able to help borrowers and lenders execute their commercial real estate loans in an organized and efficient manner and brings an invaluable set of experience to the table for each transaction. From methodical analysis, to placing transactions in cutting edge loan programs as a result of our deep capital markets knowledge, to technical aspects of the closing process commercial mortgage broker Financial Compound is there to make the deal happen.