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9/15/15
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CBRE Capital Markets’ Debt & Structured Finance team recently arranged $9 mil in non-recourse refi money for Regency Plaza, a 36.6k sf retail center in Pleasant Hill, a Bay Area city about 20 miles northeast of Oakland.
The borrower of the 10-year, fixed-rate financing is a private, high net worth real estate investor. The loan has a 74% LTV and was provided by a foreign bank. It closed during a period of substantial volatility in the capital markets.
Michael Walker, Vice President, Debt & Structured Finance, secured the financing on behalf of the borrower. According to Walker, “An unanchored retail asset can be difficult to finance when there is a lack of credit in the tenancy and a large percentage of the cash flow is tied to short term leases. We were successful in finding the outlier lender who agreed to provide leverage in excess of 70%, cashing out the sponsor over and above his existing loan balance even though the property lost two tenants during the closing process.”
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