Case Study: $38MM Retail Shopping Center | Recapitalization | Miami, FL
Structured and arranged medium-term, fixed-rate senior debt to recapitalize a 120,000-square-foot retail shopping center located in Miami, Florida.
The borrower was seeking high-leverage, long-term fixed-rate financing even though the property was in a transitional stage. The L-shaped anchor tenant space was vacant and although several tenants had signed leases, they had yet to take possession. Additionally, a number of leases had termination options set in the same year, which, if exercised, had the potential to create significant vacancy.
Identified a CMBS lender who was willing to structure an initial interest-only period, holdbacks and reserves to carry the property through the transitional period to its near-term stabilization. Local market data substantiated the higher than average rents and value of the property thereby allowing the borrower to achieve higher than expected proceeds.