|
10/17/12
|
Morrison Street Capital made a $2 mil structured equity investment in Valley View Industrial Park, a 196.3k sf light industrial business park located in Las Vegas. The structured equity in this transaction was used to recapitalize the ownership entity and refinance the property.
Prior to the recapitalization, the property owner faced a maturing senior mortgage with a high loan-to-value ratio. Morrison Street Capital’s investment into the ownership of the property enabled a partial pay down of the mortgage which the lender then extended for seven years at an attractive market rate and structure. Additional funds were placed in reserve for capital repairs and future leasing costs.
Rance Gregory, CEO of Morrison Street Capital, described the role of and need for structured financing solutions in commercial real estate capital markets. “While certain assets have recovered in value, many small to mid-market assets in secondary markets remain in need of rescue capital to either deleverage or solve operational challenges. This latest investment fits well within our strategy of providing equity, preferred equity or mezzanine debt to assist in the acquisition or refinancing of quality real estate assets.”
The existing lender, a life insurance company, extended the term of the $10.5 mil mortgage for seven years at a fixed rate. The property is now positioned to generate significant positive cash flow.
|
|
Return to the Archive page
|
|
|
|
|