Kathy Anderson Secures $5,900,000 with 24-Months Interest-Only for Middletown Shopping Plaza Leasehold
Kathy Anderson of Progress Capital arranged a $5,900,000 CRE loan for a valued client to acquire the leasehold and subsequently renovate the shopping plaza located at 1515-1517 Route 35 in Middletown, NJ. Subject to a 99 year land lease that began in 1969, the plaza includes a 65,324 SF single-story retail building anchored by Staples, who plans to free up 28,000 SF of available space by downsizing. This is a value-add purchase as Staples is paying $2.41 PSF.
This loan represents a 65% loan to contract price with $3,900,000 allocated to acquire the property and the remaining $2,000,000 used to complete renovations of the vacated space while establishing $500,000 in interest reserve. Anderson arranged a 24-month interest-only loan which allows the borrower time to renovate the property before entering into a permanent mortgage upon stabilization.
Additional key terms of this loan include:
- Interest Rate floating at 1-month LIBOR + 3.15%
- 24-Month Term w/ optional 12-Month Extension
- No Prepayment Penalty
- 100% Recourse
- No Exit Fee
Progress Capital is a commercial real estate advisory company serving clients since 1990. With over $40 Billion in closed loans and $150 Million of directly funded bridge loans, we will get you to the closing table… Plain and Simple. #thatsProgress