12.41% return on limited equity at 80% LTV
Need help finding a loan with a low-down payment on your first net lease acquisition. We got you covered.
“Our client was in his first net lease transaction and had limited equity to place in the transaction. We were able to find him a loan facility that capitalized on the location and the strength of the sales of the tenant. Due to a high debt service coverage ratio, we were able to attain an 80% LTV maximizing his return.”
-Chris Miller
Deal Quick Look:
80% Loan to Value (LTV)
Flexible prepayment
25-year amortization
The Property: The subject property consists of a 9,180 SF building leased to Family Dollar with 3.5 years remaining on the initial term. The lease required the tenant to report sales and the property was operating well above the national average due to the densely populated location. The property is located in a major MSA of Texas.
The Challenge: The client needed maximum leverage to allow for a high return on a lease that only had 3.5 years remaining. The borrower was also in his first net lease transaction with the hopes of building a management free portfolio in the net lease sector.
The Solution: Chris Miller, Managing Directors for Anthem Advisors/Triple Net Lending, was able to provide loan terms that got both the borrower and lender comfortable moving forward with the deal. By matching up the loan term with the lease and extension options, the borrower has the opportunity to create additional value through a sale or refinance at the end of the loan term.
