$3.85 Million Refinance of NNN credit tenant loan

Posted by in Brian's Blog, Commercial Real Estate, Recent Closings

Where: South Florida

Type:  This was a NNN lease to a credit tenant with 12 years left on the lease.  The trick here was that the borrower is 80 and wanted max cash flow for the next 5 years but did not want to leave the property to his children with a lot of debt and an expiring lease.  Working with a boutique bank, we were able to craft a low interest loan with longer amortization to maximize his cash flow, and then during the final 5 years, do a sweep that sweeps all the profits straight to debt reduction.  In this way, when the lease expired, the loan would be almost completely paid off and yet he got the cash flow he needed to keep living comfortably for the final few years of his life.  With the depth of financing we have available to us, we can often tailor the loan to the clients specific needs!  We have seen an influx of strong investor deals of late as people are rushing to take advantage of these extremely low rates-often into the 3’s for the best of deals!