$31,000,000 Loan Arranged by Barry Slatt Mortgage
(PRWEB) November 12, 2015 -- Barry Slatt Mortgage Executive Vice President Scott Monasch recently arranged a $31,000,000 construction/permanent loan with one of our correspondent life insurance companies on a 194,000 square foot to-be-built distribution facility in California. The loan had a multitude of positive structural elements for the borrowers. The loan was a 15/15 fully amortizing loan to match the initial lease term, at a 65% loan to cost and 57% loan to stabilized value, with a very low 4% interest rate. The loan included 15 months of interest-only for the construction period.
The loan structure allowed the borrower to get significant credit for the land value for their equity component. Monasch was also able to allow a very unique and unusual structure during the construction phase by allowing the lender to accept the developer as the guarantor until there was a CofO and estoppel issued, at which time the loan will convert to non-recourse to the borrowers. Another unique waiver that was achieved was the allowance of the project to start construction and grading before there was a building permit in place. The borrower had been in significant and long term discussions with the municipality and had documentation that got the lender comfortable.
The loan was extensively presented to Barry Slatt’s life insurance correspondent network and a large cross section of other lenders and credit tenant lease platforms to secure the best execution and loan for our client. The large size of the property within its market and location provided some challenges for national lending and out of area resources. Monasch was ultimately able to secure an extremely competitive product with many positive elements for the client. By using one of our correspondent life insurance companies, Barry Slatt Mortgage retains the servicing of the loan and is also involved in the review and approval of the draw process to help support the project to completion and throughout its loan cycle.
By providing a construction/perm loan, we were able to lock in today’s historically low rates from the start of construction throughout the completed project until maturity with one turnkey loan. This saved the borrower significant dollars as the lender charged a minimal fee compared to traditional construction loan fees, which insulated them from going to market for their permanent loan 15 months or more later, exposing themselves to what will likely be a much higher interest rate environment.
About Barry Slatt Mortgage: Barry Slatt Mortgage is a long-standing and respected institution with more than four decades of experience in commercial mortgage banking. Slatt has correspondent relationships with several of the most prestigious lenders in the country, providing custom-tailored solutions for borrowers' needs.
Christopher Bright, Barry Slatt Mortgage, http://www.slatt.com, +1 (650) 931-9021, [email protected]
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