Whole Foods Challenge

THE CHALLENGE: A Massachusetts real estate investor contacted Progress Capital to refinance a 30,000 SF NNN Whole Foods in Morristown, NJ with following challenges:

1. $7,500,000 which includes a cash out of almost $1 Million
2. In place DSC of 1.00X until the next rent bump in four years
3. No prepayment penalty
4. On-going remediation

THE SOLUTION: Kathy Anderson and the team at Progress Capital were able to negotiate the below loan terms which provided the borrower with a cash out today and the ability to sell the property without prepay in the future.

1. Loan Amount: $7,500,000
2. LTV: 80%
3. Rate: 625%
4. Term: 15 Years
5. Amortization: 25 Years
6. No Prepay
7. Reserve – the bank held a $172,000 reserve for the DSC shortfall which would be released 25% per year over the next 4 years

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