One of our VIP clients has been trading out of multifamily assets and exchanging into NNN properties across the United States. This particular transaction was part of a portfolio purchase that was being made of four Sonic Fast-food restaurants all owned by the same operator.
Rates had been on the rise and as such we were receiving loan quotes between 6.25% to 7.25% which is high. It took a little more time than usual to find the right program and ultimately located a great product.
Our Loan officer negotiated with the lender and structured a fantastic five year fixed at 5.75% which resets for another 5 yrs tied to the 5yr CMT with a spread of 2.50%, was also able to obtain a short term step down prepay of 3-2-1%, the lender agreed to not charge for an environmental phase one and instead conduct an EDR desk top review. The borrower's liked the terms and we ended up doing all four loans with the same lender. It's time to go have a burger at Sonic's!