ValueXpress obtained a $1,775,000 CMBS conduit loan for a prominent developer in Buffalo, New York that provided approximately $375,000 in cash-out proceeds to provide equity for additional real estate projects. The loan is secured by 4 commercial retail buildings leased to 18 tenants. The property, which totals 33,100 square feet of space, is grade-level retail with 3 apartment units above. The properties are located on Delaware Avenue, the main commercial street in downtown Kenmore.
The small population base in Kenmore of 15,000 persons created difficulty in closing the transaction. Most CMBS lenders require a population base of over 25,000 persons. ValueXpress completed extensive market research on behalf of the client to prove the “Main and Main” location was strong. In addition, many of the tenants have been in occupancy for over 10 years. Furthermore, the sponsor, with direction from ValueXpress, was able to negotiate a long-term extension with a major tenant that eliminated an up-front reserve and provided additional cash-out proceeds to the borrower.
“This successful closing was another example of how ValueXpress can cost effectively originate and close small non-recourse loans for our clients,” said Dennis Suh, Senior Vice President of ValueXpress. “What is particularly satisfying about this transaction is that with the new interest rate in the mid-4% area, the debt-service payment is the same as what the sponsor was paying, despite receiving $375,000 in cash-out proceeds at closing.”
For your next retail loan, call Dennis Suh at 212-883-6487 or send him an email at firstname.lastname@example.org.