The subject property is a 33 unit, single story retail strip center comprised of mostly local, non-credit tenants. Many of the tenants have occupied their spaces for over 15 years.
L&N‘s Matthew Lebenson was successful in securing a 5/3 ARM at 5.65%, amortized over 20 years at a max LTV of 70%. The main hurdle on the assignment was that Ownership came out of Bankruptcy in 2013 due to their previous lender exercising an option to call their loan in full. There had not been a payment default to trigger such an action rather it was just a decision the previous lender decided to take at the surprise of Ownership. With the Capital Markets not fully thawed at that time, Bankruptcy was the only option to buy time and save the Asset from Foreclosure. Ownership was able to secure a Bridge loan, allowing time for a conventional lender to issue permanent debt.
Obtaining interest from a new lender with such a storied past was a challenge. However, with strong cash flow, a stable rent roll and documentation validating the story, L&N was successful in securing a long term facility that was not structured as a balloon which Ownership was adamant about obtaining.