Mr. Scott Monasch, Principal with Barry Slatt Mortgage, recently closed an acquisition loan for a large group of investors based in China. The loan amount of approximately $11,800,000 was utilized by Mr. Monasch's clients to acquire a single-tenant R&D building in Silicon Valley. The closed loan represents a full-term interest-only loan with an interest rate of 4.58%, fixed for 10 years. The lender for the deal is a prolific originator of CMBS loans, with which Mr. Monasch has completed multiple loans during 2017 alone.
There were a number of challenges to closing the loan, as the borrowing group consists exclusively of borrowers residing outside of the United States, just one of whom is a U.S. Citizen. Additionally, the borrowing group, while inclusive of all high net-worth individuals, collectively holds limited domestic assets. Mr. Monasch was able to help the lender understand the overall financial strength of the borrowing group.
As of the closing date for the loan, the tenant had not yet moved into the subject's improvements, nor had the tenant begun to pay rent. Mr. Monasch structured the deal around occupancy and rent commencement events.
Mr. Monasch worked closely with the borrowers' counsel to create and refine many elements of the loan and the acquisition in general, taking on many responsibilities beyond the typical duties of a mortgage originator.