Double Digit Returns achieved in Net lease Oil & Gas Services Property
Need a quality loan for your net lease to maximize your return? We got you covered.
“Our client was seeking a swift execution for an oil and gas services net lease in West Texas to add to his real estate holdings to maximize cash flow and earn a high rate of return. We were able to place the loan with a regional lender. We secured a competitive rate, 75% loan-to-value, 25-year amortization with short prepayment penalty.”
-Chris Miller
Deal Quick Look:
5 year Fixed Rate Term
75% Loan-to-Value
25-year Amortization
Short Prepayment Penalty
The Property: The subject asset consists of a 9,000 square feet, 3 year old building constructed on a 5 acre parcel of land leased to a regional company specializing in servicing industrial power and generation systems for oilfield services. The building is comprised of 3,000 SF office, a 6,000 SF fully insulated shop with 3-Phase power and a covered wash-bay. The landlord is only responsible for the structure.
The Challenge: The borrower was in a 1031 exchange with and needed to close with certainty and execute quickly. Even though the tenant has been in business for 50 years plus, many national lenders are not familiar with West Texas. We found the best solution was a regional lender that knows the area and has a strong track record with Triple Net Lending. We worked closely with the brokerage firm and lender to close successfully and ahead of schedule.
The Solution: Chris Miller, Managing Director, placed the debt with a regional lending institution that is part of our NNN lender network. The lender understood the closing timeframe and worked efficiently. The process was managed effectively by the Triple Net Lending team as well as the borrowing team. The borrower is achieving one of the highest returns we have seen on a commercial real estate acquisition in recent years.
