/UCW/ SAN DIEGO, CA – MCF is in the process of arranging financing for two Walgreen Pharmacy’s, a KFC / Taco Bell and a Dollar General Store in the first Qtr. 2016.
For the first Walgreen property Christian Marabella met the client in the MCF office located in University Town Center near La Jolla, Ca to review documents and determine the clients specific loan needs. The Sponsor requested that Marabella Commercial Finance offer him a refinance / cash out loan of approximately $4,500,000. His original loan balance is approximately $3,200,000 so he will be pulling out approximately $1,300,000 which he plans to purchase more net lease or commercial properties. MCF, Inc. arranged a 30 year amortized loan due in 10 and fixed for 5 years with a reset at around the 6th year. The start rate for this transaction was set at 4.45%. The loan has no prepayment penalty so the client can pay-off the loan without penalty if he chooses or if he decides to sell the property the next buyer can get their own favored loan giving the MCF client a lot of flexibility. If all conditions are met this loan will fund no later than Feb 8, 2016.
For the second Walgreens Christian Marabella met the client at the MCF office located near South Coast Plaza in Newport Beach, Ca. This client was in a 1031 Tax Exchange and Marabella arranged a loan amount of $2,328,000 which came to a loan to value of 64%. The buyer has approximately $1,300,000 in his 1031 exchange account to come to escrow. The loan term is for 7 years and the Amortization is 25 years. The initial rate was fixed at 3.95% for 5 years and at the end of the 5th year the loan adjusts at 275 BP per annum over the two year U.S. treasury obligation. The floor rate for this loan is 3.95%. If all conditions are met this loan is to fund around mid-February 2016.
For the KFC / Taco bell MCF met these clients at our office in University Town Center near La Jolla, CA. These clients again were involved in a 1031 exchange and showed several properties to MCF, Inc. to consider for financing. The client ended up identifying for their 1031 exchange a KFC/ Taco Bell Franchisee Leased and guaranteed property. MCF placed the loan with a portfolio Bank Lender that they have arranged approximately $50 Million + loan transactions within the last 16 months.
For this transaction the Rent to Sales was evaluated by MCF since it was not a “Corporate Lease”. MCF arranged a loan amount of $1,050,000 which came to a loan to value of approximately 60%. The term for this loan is 10 years and the amortization came to 25 years. The initial rate was fixed at 4.50% for five years and will adjust at 275 BP per annum. Floor rate is 4.50%. The client’s hot button was a friendly prepay option and MCF structured a 1% prepay for the life of the loan with the ability to pay down 10% of the loan per year on a noncumulative basis. If all conditions are met this loan is estimated to fund in late February 2016.
For the Dollar General transaction Christian Marabella met the client in our University Town Center office near La Jolla, CA. This debt was again placed with a portfolio Bank Lender that MCF has placed approximately $50 Million + loan transactions within the last 16 months. MCF arranged a loan amount of $750,000 which came to a loan to value of 61% loan to value. The rate on this transaction was set at 4.75% for 5 years and the loan is also due in 5 years. The amortization for this loan is 20 years. The client’s hot button was a friendly prepay option and MCF structured a 1% prepay for the life of the loan with the ability to pay down 10% of the loan per year on a noncumulative basis. If all conditions are met this loan is estimated to fund in March or April 2016 when the store starts paying rent, a Certificate of Occupancy is issued and the business is up and running.
About Marabella Commercial Finance
Marabella Commercial Finance specializes in arranging financing for 1031 Exchange Net Lease Buyers, Commercial Investment Properties and Large Anchored Centers. Past Credit Tenant Net Lease Properties that Marabella Commercial Finance has originated loans are as follows; Walgreens, CVS, Starbucks, Kohls, Dollar General, Family Dollar, Dollar Tree, Safeway Stores, Rite Aid, Jack in the Box, 7-Eleven, O’Reilly’s, AutoZone and Large Anchored Centers with credit tenants. Marabella Commercial Finance, Inc. will be attending the International Council of Shopping Center’s RECON Convention around May 21st to the 25th, 2016 at the Las Vegas Convention Center in Las Vegas, Nevada.
Christian S. Marabella – President
Marabella Commercial Finance
We Finance America’s 1031 Exchange Net Lease Properties