Highlights: Broken Condo / Cash Out - $ 30 million
The sponsor acquired a large block of units in the subject property in 2010 from a bank and has slowly been acquiring the remainder of the units in the project. In the last year the sponsor was able to obtain control of the HOA board after acquiring enough units to control 75% of the voting rights at the property. She came to us looking for permanent financing and taking out all of her cash equity in the project. Both agency and CMBS lenders competed for the financing opportunity.
Highlights: Clean Deal, Closed in Under 35 Days! - $ 7 million
At Capital Slack, we liked to tell stories of the challenging deals we get done because we like tough deals, but easy deals are great too. This transaction came to us as a refinance of a maturing CMBS loan. The borrower was experienced and the property was well occupied and had a long history of performance. The sponsor wanted to take some cash out, but after 15 years of ownership, none of our lenders gave us any grief over this. The highlight to this transaction was a quick close and an early rate lock. Easy or hard, bring your deals to Capital Slack.
Ogden, UTRefinanceFlex / Indstrial7.5%
Major Tenant Bankruptcy Left a Void - $ 11 million
This flex industrial deal went through some unexpected vacancy when a retail tenant leasing office and warehouse space in the subject filed for BK and rejected the lease, leaving the property 20% occupied. The borrower had a bank loan, but the bank requested the loan be repaid prior to closing on a new construction loan for the sponsor on an unrelated property. The sponsor came to Capital Slack looking for a solution. The property was well located and a quick lease-up could be expected, but the property had negative in-place cash flow. Capital Slack worked with its network of non-recourse bridge lenders to find a competitive solution with accruing interest until the property was able to pay debt service. The sponsor closed on the loan and then closed on the construction loan the next day. That’s the power of Capital Slack!
Las Vegas, NVPurchaseParking Structure4.90%
Alternative Asset Classes Work Too! - $ 15 million
Capital Slack closed this parking asset with a CMBS lender. The sponsor came to us looking for 75% of the purchase price on this acquisition. We obtained commitment and locked the rate prior to the sponsor “going-hard” on the acquisition and closed several days later. Efficient, affordable, and closed. That’s how we like our deals!
Los Angeles, CAAcquisitionHotel5.25%
Unsubordinated Ground Lease - $ 20 million
The sponsor acquired this hospitality asset and immediately looked to sell the ground to a family office at a cap rate substantially below the cap rate on the overall acquisition. Capital Slack worked with its network of CMBS lenders to obtain financing for the leasehold interest in the property. While some lenders were uncomfortable with the structure there were enough lenders comfortable with the transaction to clear the market and get to a competitive rate with ample leverage to close on the transaction. The sponsor commented that Capital Slack’s communication platform was instrumental in managing the heavy amount of back and forth with all of the lenders on such a complicated deal.
Life Company, Forward Rate Lock - $ 45 million
The sponsor built this 42′ clear warehouse deal on a spec basis on one of the best sites near the airport in Atlanta. Before completing the site improvements, they landed two long term leases from quality tenants which would occupy 100% of the property. Capital Slack worked with the sponsor to obtain a forward rate lock with one of our life insurance lender relationships. The rate was locked nine months prior to the sponsor obtaining the certificate of occupancy and the loan was closed three days after CofO was received.