Company Newsletter : May, 2012
Marabella Commercial Finance, Inc. Arranges Financing For Three Walgreens 1031 Properties in 1st and 2nd Quarter of 2012
Marabella Commercial Finance, Inc.originates permanent financing for two 1031 Net Leased Walgreen Pharmacies in the first and second Quarter of 2012 and receives conditional approval for third Walgreen property. Marabella is also hopeful to receive conditional commitment for a fourth Walgreen refinance in second quarter of 2012.
Marabella Commercial Finance, Inc. refinanced a Walgreen with a loan amount of $2,800,000 that had a Tenants In Common Entity. This was a difficult transaction due to the fact that most lenders do not favor TIC Entities at this time in the commercial real estate cycle. Marabella arranged a Quasi Portfolio / Institutional Non-Recourse loan with standard carve-outs, an amortization of 25 years and a fixed rate term of 10 years. The interest rate was locked for 10 years at approximately 6.13%. This transaction funded in January of 2012. The owner of the Walgreen property was located in Beverly Hills, CA and Marabella met the owner at our satellite office in Beverly Hills to assist with the structuring and processing of the loan.
Marabella Commercial Finance, Inc. funded a $4,353,000 loan for a Walgreen corporate leased pharmacy. The Buyer for this trans-action was involved in a 1031 exchange transaction. The Borrower requested a long fixed rate loan term and amortization. Marabella Commercial Finance, Inc. arranged a CMBS loan with a 30 year amortization and a 10 year fixed rate. The rate was locked at 4.90% for the full 10 years. This loan was Non-Recourse with Standard Carve-Outs. This loan was applied for on around February 27, 2012 and funded on approximately April 16, 2012. Thus from the time the Borrower applied for the loan to the time the loan funded was a total of 48 days. Timing was very important to the Borrower since he was involved in a 1031 Exchange and the seller gave him a very short window for his Due Diligence / Financing Contingency period so exceeding this time frame could have jeopardized the Buyer / Borrower’s Good Faith Deposit that was given to the seller of the store. Marabella assisted in the processing of the loan which enabled the buyer to meet his 1031 exchange requirement and close in a smooth and stress free manner.
Marabella Commercial Finance, Inc. arranged an acquisition permanent loan of $4,500,000. This was also a CMBS loan and had similar loan terms to the previously mentioned CMBS Walgreen loan. This arrangement should fund if all conditions are met around the end of April 2012. This loan was applied for on March 12, 2012. Thus from the time the Borrower applied for the loan to the time Marabella expects the loan to fund will be a total of 49 days start to finish if all conditions are met. Again timing was very important to the Borrower since he was involved in a 1031 Exchange and the seller gave him a very short window for his Due Diligence / Financing Contingency period.
Marabella Commercial Finance, Inc. is working on a fourth Walgreen transaction that still needs approval. This transaction is a refinance and will hopefully win approval sometime in April 2012 if all conditions are met. Loan Amount for this transaction is $2,750,000. Marabella is arranging a 25 year amortized loan with a 10 year fixed rate. Rate has not been locked on this transaction at this time. Estimated rate at this time for this transaction is 5.00% to 5.375%. This loan has a very friendly prepayment penalty of 3/2/1 giving the Borrower a lot of flexibility if he plans to sell or pay off the loan before the end of the loan term. This loan was sourced to a portfolio lender at the request of the Borrower.