A loan modification that does not involve a reduction of principal, a higher interest rate, or additional collateral requirement validates an Operator's ability to perform in a down or receding economy.
Phoenix, AZ (PRWEB) September 21, 2009
Equity Based Services, Inc. ("EBS") announced today that they have successfully renegotiated an extension to an existing construction loan. The original loan was used to build a Class-A, 2-storey expansion to the EZ Store facility in Peoria, AZ a suburb of Phoenix.
The 3 year construction loan with Imperial Capital Bank came due this month and was extended for an additional year at substantially the same terms. The interest rate remains at Bank of America Prime + 50 basis points and amortized over 25 years.
EZ Store received its Certificate of Occupancy on January 20th of 2008 and began rental activity on February 1, 2008. As of the refinancing, the new facility has achieved 79% occupancy by square foot. Full stabilization is expected by the time the loan matures which should facilitate the straightforward and simple placement of permanent financing.
"This loan extension shows that there is pragmatic optimism in the commercial lending markets and that lenders are being reasonable with modifying loan terms on projects that make financial sense. The financial landscape still makes sense for deals that make sense," states Troy Downing, Principal Equity Based Services, Inc.
"In today's environment, the ability to refinance or extend a loan is driven by the Lender's perception of an operator's experience, professionalism, and the consistent execution of a well thought out business plan." States Stephen Kaplan, CEO, Equity Based Services. "A loan modification that does not involve a reduction of principal, a higher interest rate, or additional collateral requirement validates an Operator's ability to perform in a down or receding economy."
About Equity Based Services, Inc
EBS is a Private Real Estate Company specializing in the acquisition and management of self-storage property. According to the Mini-Storage Messenger, EBS is one of the top owner/operators in the US. EBS currently owns and operates 63 Self-Storage properties in 11 states with a current market value of more than $300 Million. EBS also manages a family of Private Equity Funds for institutional and high net worth individual investors. The EBS Income Fund, the EBS Income and Growth Fund II, and the Pilot Equity Value Added Fund all closed in 2007. For more information, contact Kurt Ambrosius at 619-220-6700.
This Press Release is for informational purposes only and does not, in any way, constitute an offering to buy or sell securities.
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