This is a Class A single tenant office in Dallas TX, leased to a AA-rated tenant on a 15-year NNN lease. We originally negotiated a 65% LTV, 5-year I/O loan with our one of our correspondent CMBS lending relationships (where we service the loan). During the first 35 days of loan processing, the fixed income markets were battered—starting from a sideways CMBS offering, the first downgrade of US credit in history and the euro debt crisis—all of which forced a change of terms from the existing offer, and cast a shadow on whether or not the loan could even close. Rather than take the risk of missing the contract deadline on the purchase due to market instability, we shifted horses to one of our correspondent Life Insurance sources who was able to put together a loan with better cash flow than the CMBS offering. We negotiated for the existing CMBS lender to release all reports and refund all non-third party expenses. We then rate locked at application with the Life Insurance Co and closed the loan 10 business days later.

For more information regarding this transaction please contact the originating banker Alex Chenarides.