ValueXpress obtained a $1,443,750 first-mortgage loan that was utilized to purchase a 32,800-square-foot, two-building warehouse complex located at 510 Midland Avenue in Houston, Texas. The building will be owner-occupied by an affiliated company owned by the client.
The loan was arranged by Charlie Lobetti, who works out of the ValueXpress Knoxville office, with the assistance of Gary Unkel, who is based in New York. “The borrower is a long-time client of mine,” said Gary. “I have completed over ten transactions over the past ten years with this client, and we have two more in the pipeline.”
“This transaction is an example of the breadth of services ValueXpress provides to its clients,” commented Lobetti. “All of Gary’s closings for this client have been in the New York metro area. This deal was the first out of state, and the client had no idea where to get a commercial loan to purchase this property in Houston,” explained Lobetti. “I have community banking relationships throughout the United States and one of my bankers jumped on this deal.”
The client’s company deals in the sale of previously used clothing, footwear and toys. Items are purchased by the pound and are resold in the owner’s vintage clothing stores in the N.Y. metro area. The balance is exported, primarily to Guatemala. The client needed a warehouse in Texas to more efficiently import and export goods.
The loan transaction was structured with a 10-year term based on a 25-year amortization schedule. Loan-to-value was 75% and the interest rate is fixed for 5 years, with a reset in year 5 for the following 5 years.