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8/24/20
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Tauro Capital Advisors Inc has secured a total of $50 mil in revolving debt facilities that will enable single-tenant, triple-net-leased developers to expand their portfolios through new site acquisitions and development. Tauro’s Stephen Stein and Tony Festa worked together to arrange the financings.
“Single-tenant triple-net-leased product has continued to emerge as a stable asset class of choice for many investors across the country,” explains Festa. “The industry saw a similar trend out of the 2008 downturn and throughout the last cycle, when single-tenant net-leased properties continued to perform and emerged from the recession relatively unscathed and resistant to market conditions. Today, we are seeing a similar shift as an increasing number of investors turn to NNN product rather than more management-intensive alternatives.”
The three recent facilities arranged by Tauro include:
• $25 mil facility to develop additional NNN properties including national credit tenants 7-Eleven, Starbucks, Dutch Bros. Coffee and Chick-Fil-A.
• $15 mil facility arranged on behalf of a western developer who will use the facility for NNN developments for Circle K, O’Reilly’s, AutoZone, Starbucks amongst other national credit tenants.
• $10 mil facility arranged on behalf of a private developer in Northern California to fund future development for a variety of major tenants throughout California including Starbucks, Grocery Outlet, 7-Eleven.
All three facilities were secured through private lenders and debt funds offering 100% loan-to-cost debt facilities. This provides increased liquidity for developers by freeing up otherwise tied up equity allowing them to pursue more opportunities without sharing any profit participation. The use of funds includes reimbursement of all pursuit costs, leasing commissions, and due diligence, as well as land acquisition, financing and construction costs, and a development fee if desired.
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