One Stop Shopping for Client 9.6% Cash on Cash, Max Leverage & I/O
Need an off-market property for a 1031. We got you covered.
“We were able to find our client an off-market property with a very attractive cap rate through our strong broker network. Quality assets are in high demand today, especially those with lease terms exceeding 10 years with excellent demographics. Due to our relationships in the brokerage community, we were able to help our buyer secure and win this deal! Affiliated sales brokerage firm, Anthem Advisors, represented the buy-side of the transaction making this a seamless transaction and closing.”
-Chris Miller
Deal Quick Look:
$5,100,000 Loan at 70% LTV
Full Term Interest Only
10-year Term
Non-Recourse
The Property: The subject asset consists of a 1.74- acre parcel leased to Walgreens on an absolute NNN basis with zero landlord responsibility. Walgreens operates an approximate 14,474 SF building with sales figures above $500/SF.
The Challenge: The borrower was in a 1031 and wanted a long-term NNN leased property with greater than 10 years of lease term. We were able to secure an off-market property at a very attractive cap rate with 13.5 years of term remaining at closing. The client wanted the property for estate planning and wanted maximum lease term with a manageable cap rate.
The Solution: Chris Miller, Managing Director, placed the debt with a national lending institution that is part of our NNN lender network. The lender was extremely comfortable with the asset due to the exceptional store sales and the population over 130,000 within 5 miles. The financing maximized the leverage and offered full-term I/O increasing the borrowers cash flow significantly. The borrower is benefiting with a passive 9.6% cash on cash return.
