ValueXpress has arranged a $3,900,000 CMBS conduit loan for the purchase of a retail condominium leased to 7-Eleven on a triple net basis for 15 years. The store is located on the ground floor of a residential condominium located along the east side of Bowery, between East 3rd Street and East 4th Street in the East Village section of New York City. The 7-Eleven store consists of 2,162 square feet.
“ValueXpress negotiated a 10-year loan that requires interest-only payments with no amortization over the term of the loan,” said Michael Sneden, Executive Vice President at ValueXpress. “This structure provided the highest cash-on-cash return to the buyer.” The transaction was completed as an IRS section 1031 tax exchange, which deferred income taxes on a gain the buyer achieved from the sale of another commercial property.
The transaction was complicated by uncertainty regarding whether the retail condominium had a valid certificate of occupancy. The transaction parties enlisted experts that interact with the Department of Buildings for the City of New York and the issue was sorted out, allowing the transaction to close prior to the expiration of the 1031 exchange period.
To get a free, no-obligation quote for your next full-term, interest-only CMBS conduit loan, contact a member of the ValueXpress team: Mike Sneden (firstname.lastname@example.org), or Gary Unkel (email@example.com).