Transaction Overview
JJay Brooks secured a permanent loan for a non-credit single tenant grocer in a tertiary Northern California market. This financing provided a consolidation of the existing 1st Trust Deed and a higher yielding 2nd. As a build-to-suit, the lease rate was established as a return on cost. That and its’ tertiary location complicated the appraisal comparative process. Mr. Brooks identified a capital provider who was comfortable with the sales history and structured a tighter amortization period to minimize event risk. The 7 year term loan was sized to 65% LTV and is fixed at 4.90%, amortized over 15 years. This portfolio lender offered a step-down prepayment with the final two years open without penalty.
