Barry Slatt Mortgage – San Diego (“Slatt”) announces the closing of Hazard Corporate Center, a 96,000 square-foot multi-tenant industrial facility in the Miramar industrial submarket of San Diego.
This is the second loan provided by Slatt to the RE Hazard Contracting Company (“Hazard”), a real estate investment arm of the Hazard family originally formed by Roscoe Elwood “Pappy” Hazard Sr. in 1926. Among other large and small projects throughout the Southern California area, Hazard is perhaps best-known for their crucial role in building up the Southern California freeway system. In the late 1990s, Hazard built Hazard Corporate Center adjacent to their corporate headquarters and have owned and operated the property ever since.
Slatt was tasked with several specific requests from the client on this refinance. First, Hazard requested a large amount of cash-out for their planned use in additional investments. Second, they strongly preferred a long-term fully-amortizing loan structure. Third, they required minimal personal recourse to the principals of Hazard. Finally, as there remained some time on the current loan with a prepayment penalty, Hazard requested a refinance structure that was as financially efficient as possible.
The Slatt team, headed by Vice President and Managing Director Cody Charfauros, worked with several of their correspondent lenders to provide multiple aggressive and competitive offers. On behalf of the borrower, Mr. Charfauros negotiated a prepayment penalty waiver along with a sizable cash-out on a 20-year fixed, fully-amortizing loan with declining entity recourse.
During the due diligence process, a property condition assessment came back with some unexpected condition issues. Slatt was able to work with the Borrower to provide the lender comfort that the Hazard team and their property manager already had a robust maintenance plan in place and had plans to fully correct all condition issues as they arose. Slatt successfully avoided any holdback, additional recourse or other structure that is typically required in such instances.
Finally, although this was a sizable cash-out refinance request, the Slatt team was able to work with the lender’s processing and closing teams to ensure a highly-efficient and quick closing timeline to enable the borrower to execute their planned investments.
“It was an honor for all of us to serve the Hazard family once again,” Mr. Charfauros said. “All San Diegans owe a lot to this incredible family for their continued contributions to our community.”