ValueXpress obtained a $2,500,000 first-mortgage loan commitment from a CMBS conduit lender to refinance a construction loan that was utilized to construct a CVS drugstore in Tulsa, OK. The property is a newly-built prototype building with 13,225 square feet. The lease provides for a 25-year term, with a fixed net rent for 20 years and a rent bump for the remaining 5 years of the primary term. The lease provides for 6 five-year options thereafter. The loan has a 10-year term based on a 30-year amortization.
The property used to be occupied by an independent drug store and a fast food restaurant, both of which were demolished for the new construction. The location is the third in the Tulsa area as CVS continues its expansion throughout the state of Oklahoma.
“This transaction is an example that small loans of the right quality can get financed through CMBS,” said Michael D. Sneden, Executive Vice President at ValueXpress. “Credit-tenant drug stores like CVS and Walgreen’s are in high demand for CMBS loans.”
