Triple net asset financed at an attractive fully assumable fixed interest rate for 10 years
Need help with a rate lock in a rising interest rate environment? We got you covered.
“Our client purchased the asset with all cash in 2020 while in a 1031 exchange. They engaged us to put financing on the asset which would allow them to have funds to purchase investments in the future. They were worried about the rising interest rate environment, so we placed them with a lender that offers to lock rate at anytime during the loan process. They were able to capitalize on the rate lock and closed with a rate that was approximately 1% less than the market today. Their LTV was manageable due to the compression in cap rates from the time of purchase. The lease had burned down for 2 years and still appraised for $300,000 over their purchase price.”
-Chris Miller
Deal Quick Look:
3.54% interest rate
10-year loan facility
Stepdown prepay
Assumable
The Property: The subject property consists of a 9,014 SF building leased to Dollar General with 11+ years remaining on the initial term. The property was built in 2019 and is located in a tertiary market.
The Challenge: The client needed to lock in an interest rate during a rapidly increasing rate environment. They wanted to maximize cash flow while taking out cash to purchase assets in the future.
The Solution: Chris Miller, Managing Directors for Anthem Advisors/Triple Net Lending, was able to place the loan with a national lending institution that is part of our NNN lender network. TNL has built a relationship with the lender and understands the flexibility of their program to lock the interest rate. The borrower was able to lock in a 10-year loan at a 3.54% interest rate that is fully assumable to a new qualified buyer in the event the client opts to sell in the future.
