Martin Siegel and Gary Wool of Wool Finance Partners have arranged $4.5 million in financing for Pershing Terminal in Stickney, Illinois. The creative loan structure was secured by a 100-percent-leased, 54-door truck terminal and maintenance facility on a 10-acre site.
The lender, a west coast life insurance company, underwrote the loan based upon not only the value of the real estate but also a lender environmental insurance policy obtained by the borrower. The lender was able to underwrite the Recognized Environmental Conditions (RECs) on the site utilizing the lender environmental insurance policy which insures the lender for any remediation costs in the event of a borrower default.
The loan structure provided for a $4,500,000 conventional mortgage for the real estate with a 25-year term and 25-year amortization, an initial fixed-rate term of 7 years at 5.125 percent and limited 50 percent personal recourse.