California

Shahin Yazdi placed the 65% of purchase debt for a single tenant industrial condo in Hayward, California. The property is an investor acquisition and not an owner-user asset. The seven year term is fixed for five years at 4.00%, amortized over 25 years. Proceeds were maximized to a 1.35 debt coverage ratio on actual leased income. Challenge: The borrower’s global debt to income cash flow fell below most lender guidelines. The tenant only had 5 years remaining on their lease. Solution: The borrower’s liquidity mitigated a majority of the credit issues. Post-close income generated from the subject property improved the global cash flow. The tenant had operated from this location for over 10 years and had just completed $100,000 in Tenant Improvements.