$2,320,000 Cash-Out Refinance of a Single Tenant with 3 Years Remaining on the Lease to a TIC Borrower

Transaction Description:  Shahin Yazdi placed the debt on a single tenant property that was held in a TIC (Tenants in Common) ownership structure. The lease term has only had 3 years remaining. GSP documented existing rents were significantly below market, so much so that the portfolio lender agreed to waive all prepayment penalties should the tenant vacate prior to the loan term expiration, allowing the owner the opportunity to recapture trapped equity. Cash out proceeds were underwritten to 75% of value as capped by the below market in-place income. The potential future value to be realized three years from funding made the capital provider comfortable with the TIC ownership structure and aggressive non-recourse fixed rate of 4.10% for five years. There are no capital or leasing commission reserves required.