New York, NY (PRWEB) October 04, 2011
The proceeds of this $10 million loan were used by the borrower for the repayment of a $3.5MM in existing debt and cash out proceeds of $6.5MM.
According to Mr. Dragone, the Managing Director and team leader on this deal at Terrace Capital, “Avtex Commercial Properties is an established developer, with a 25 year history in developing commercial property through the Carolinas, and turned to Terrace because of its ability to navigate the non-recourse, credit markets and provide innovative solutions for low cost, permanent financing in tertiary, rural real estate markets. The cities in which the properties were located in had sparse populations; Chesnee (population -868), Gaffney (pop- 12,414), Cayce (pop-12,528) and Greer (pop- 25,126). In addition to the tertiary markets, other challenges included the class C nature of the properties and modest tenant sales, as centers were competing with 10 Walmart Centers located in the region. Terrace, through various unique structuring techniques, was able to alleviate the aforementioned issues and deliver non-recourse financing, which included a $6.5MM, cash out.
The 10-year, fixed rate, non-recourse loan was amortized over 30 years and closed within 6 days of investment committee approval.
Terrace Capital is a direct lender and asset manager of private funds which provide debt or equity capital for commercial real estate transactions. The Company focuses on non-recourse loans of $5MM or greater on income producing retail, office, industrial, multifamily, self-storage and hotel properties throughout the continental United States.
Terrace has recently re-opened its non-recourse hotel lending program which focuses on strong flags, positive trends in REVPAR and sponsors with multiple properties and strong balance sheets.
The Firm is a leader in providing permanent mortgages and bridge loans solutions for wide range of real estate transactions.
For more information about Terrace Capital and the services it provides, go to http://www.terracecapital.com.