New construction, Standard & Poor’s rated A- single tenant acquisition
Need help with getting a below market interest rate due to low cap rate? We got you covered.
“Our 1031 client was looking for a steady, investment grade credit in an excellent location with a brand-new lease. He targeted a desirable, affluent location in the Southeast. The property is new construction located in an outparcel to Target. The tenant has an S&P A- credit which commanded an aggressive cap rate. We were able to get a 10-year fixed rate/30-year amortization at a below market rate of 3.02% which helped maximize our client’s cash flow. The borrower placed moderate leverage on the asset with limited recourse.”
-Chris Miller
Deal Quick Look:
Loan term co-terminus with lease term
3.02% Interest Rate
30-year amortization
No lender origination fee
The Property: The subject property consists of a free-standing, single tenant, absolute NNN leased to Regions bank. It is ideally located on an outparcel to a Target-anchored shopping center that is one of the top-performing retail centers. The surrounding neighborhoods are considered affluent with an average household income of $138,000 within a 5-mile radius.
The Challenge: The borrower was purchasing the asset with a sub 5% cap rate and wanted to maximize cash flow. To achieve the desired NOI to accomplish their investment goals, the borrower needed a +/ - 3.00% rate.
The Solution: Chris Miller and Marshall Baker, Managing Directors for Triple Net Lending, were able to place the financing at a regional lending institution. We cultivated a relationship with the originator who was looking for quality assets on the eastern seaboard. The strength of the credit and the borrower commanded a rate that made sense for both the lender and client.
