Walgreens and Jack in the Box
Location: Murrieta, California
Property type: Retail
Transaction type: Cash-Out Refinance
Loan amount: $6,790,000
Rate: 2.87% Fixed
Term: 5 Years
Amortization: 30 Years
Combined LTV: 65%
Prepayment: 3,2,2,1,0
Guaranty: Carve-Outs to Entity, No Warm Body
TRANSACTION DESCRIPTION
Team Hachem arranged two loans totaling $6,790,000 in permanent financing with over $1,500,000 cash out for a freestanding Walgreens and Jack in the Box located in Antelope Square Shopping Center in Murrieta, California. Both loans are fixed for 5 years at 2.87%. Just as the deal went into application the impacts of Covid-19 resulted in Jack in the Box ceasing rent payments and many capital providers putting a pause on new deals. The team was able to negotiate a higher leverage, cash-out refinance with no warm body for carve-outs. The Sponsor also agreed to hold back principal and interest reserves on the Jack in the Box.
