Situation:
One million square feet of industrial situated on 65 acres, comprised of office, warehouse, and distribution buildings
Largest tenant vacating over 200K sq. ft.
Maturity of note
2007 origination, $13M loan
Hart Advisors Group was the Asset Manager
Consideration & Solution:
Negotiations began with lender 90 days prior to maturity
Hart Advisors Group completed an independent assessment of the market, reviewed projections, completed a three-prong approach to valuation
Maturity of note
2007 origination, $13M loan
Hart Advisors Group was the Asset Manager
On behalf of the Borrower, Hart Advisors Group negotiated the following:
A three-year extension, interest-only (previously amortizing)
Waiver of the extension fee ($173K)
Lowered the interest rate by 1% with no repayment to the lender. Floor was also lowered allowing additional interest to accrue and be paid at the future maturity
The borrower was required to build a TI/LC reserve of $1M through operating cash flow for the re-tenanting of the vacancy
The capital contribution was limited to legal fees plus $150K
No prepayment penalty
The loan extension was closed in 30 days
RESULTS The overall savings to the Borrower for the extension and term was over $1MM
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