$10MM Retail Leasehold Acquisition | Santa Ana, CA

Arranged financing for the acquisition of two 30-year leasehold interests in a multi-tenanted shopping center in Santa Ana, CA. 

Challenges

The shopping center is situated on two parcels owned by different entities. The remaining duration of the co-terminus ground leases was problematic for many lenders who prefer longer duration collateral. Additionally, the dry cleaner tenant necessitated additional insurance in case of an environmental mishap.

 

Solutions 

Proposed several loan structures suitable for the transactions and identified relevant lenders that were willing to structure around the remaining ground lease terms. To achieve max proceeds on a non-recourse basis, selected a CMBS quote with 20-year amortization. The perceived environmental issue was economically resolved with environmental insurance.

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