ValueXpress has arranged a $2.0-million first mortgage CMBS conduit loan for the refinance of an industrial/flex building located in the Greektown section of Chicago, Illinois. The purpose of the loan was to obtain a ten-year fixed-rate loan term on a non-recourse basis to replace an existing recourse loan that was maturing.
The sponsors purchased the retail condominium, consisting of 11,600 square feet of space, in 2006. The sponsors subsequently renovated and leased to four tenants. One of the tenants, Philly’s Best, is owned by one of the sponsors.
“The challenge on this deal was twofold — to successfully execute a refinancing for a property that is partially owner occupied and to close in 22 days to pay off the maturing loan,” said Dennis Suh, Senior Vice President at ValueXpress, who originated the loan for ValueXpress. “In this instance, we extended the Philly’s Best lease through the term of the loan and the sponsor personally guaranteed its lease and worked tirelessly to close the new loan prior to the maturity of the existing loan,” noted Suh.
“This transaction is the third loan closed in the last three weeks through our “Fixed-Fee” CBMS program,” said Michael Sneden, Executive Vice President at ValueXpress. “This program fixes third-party report costs at $25,000 and has proven to be a big hit with borrowers looking to obtain a CMBS conduit loan at a low cost. This program is available for loan amounts of $1.5-$10.0 million.”
Assisting in this transaction was Doug Adsit, a Commercial Capital Training Group (CCTG) graduate. “The borrower was seeking a non-recourse loan and needed to close fast, so we recommended Dennis,” said Adsit. “I don’t think anyone thought it was possible to close a CMBS conduit loan in 22 days, but Dennis and ValueXpress delivered.”