Barry Slatt Mortgage is pleased to announce the recent $7,700,000 funding of The Convoy, a 51,000+ square foot retail center in the Kearny Mesa neighborhood of San Diego.
Built in 1973, the project thesis was that the center’s marketability suffers from issues relating to deferred maintenance, visibility, and a less than ideal tenant mix for the surrounding neighborhood. The project’s sponsors approached Barry Slatt Mortgage’s commercial mortgage banker, Cody Charfauros, to source appropriate financing for their aggressive capital expenditure and lease-up value-add business plan. Mr. Charfauros tapped Barry Slatt Mortgage’s deep network of lenders, equity partners, and other capital providers to provide options. Analyst Mackenzie Kerin rounded out the team with best-in-class execution.
In the end, Sponsorship opted to pursue an aggressive 3-year bridge loan offer from a trusted lender with whom Barry Slatt Mortgage’s relationship extends many years.
The loan included the following key features:
• 78% Loan to Purchase / 70% Loan to Total Costs
• Going-in debt yield below 6.0%
• 3 year term + 2x1 year extension options
• 30 day LIBOR + 4.650%
• Interest-only throughout the term
• Non-recourse, save for customary “bad-boy” carve outs
