Challenging Grocery Portfolio Closed
Barry Slatt Mortgage principal Michael Kaplan arranged $8,800,000 in debt to finance the acquisition of two free-standing Albertsons/Safeway stores located in the cities of Renton and Milton, WA. The two stores were recently awarded back to Albertsons/Safeway as part of the recent Hagan Grocery bankruptcy. While the two properties transitioned back to Albertsons/Safeway, many lenders were unwilling to provide acceptable terms to facilitate the financing due to the lack of tenant in place. This negative feedback from certain lenders presented a challenge for the borrower, who needed to close prior to the tenant being open and their 1031 exchange expiration date.
Barry Slatt Mortgage was successful in placing the first mortgage loans through one of their life insurance company correspondent lenders. This particular lender was selected not only for its certainty of execution but its willingness to provide an early rate lock for 120 days prior to funding and its ability to close the loans prior to the tenant being open for business. The first mortgage debt priced competitively at 4.25%, fixed for 10-years with two additional rate review periods of 10-years. This unique structure provides the borrower with a 30-year fully amortizing loan.