Producer: Michael Kaplan
City: Hesperia & Coachella
State: California
Lender type: CMBS
Property type: Retail
Transaction type: Permanent Loan
Loan amount: $17,000,000

Barry Slatt Mortgage Chief Operating Officer Michael Kaplan recently closed a two loan portfolio totaling $17,000,000. The financing was originated through one of Barry Slatt’s servicing correspondent CMBS lenders, and provided the borrower with funds to retire high interest rate debt secured by a Food 4 Less retail center and two Rite Aid Drug Store properties.

There were significant challenges associated with this segment of the portfolio. The secondary market location for all three properties, combined with the recent low occupancy in the retail center, and the less than 7-year lease remainders on the Rite Aid properties all required creative problem-solving.

Although lenders had concerns about the secondary market location of the retail center, our correspondent felt their risk was mitigated by the outstanding store performance of the anchor tenant and positive lease up trend over the past year. Issues around the short term roll-over risk on the Rite Aid leases were addressed through the quality of the underlying real estate, store performance and the willingness of the borrower to provide a cross of the two properties.

Both loans were ultimately financed with 10-year fixed rate mortgages in the mid 4% range.

President
Los Angeles & San Francisco