2004 Transactions
Tremont Structures $14,725,000
Financing for Retail Center
The
Hartford office of Tremont Realty Capital structured permanent
debt for the refinance of a 119,000 square foot Kohls retail
center located in El Cajon, California.
Steve Henderson, a Senior Director with Tremont,
arranged the $14,725,000 loan, which was funded through
a Tremont relationship with a national life insurance company.
The 10-year, non-recourse loan provided for roughly 85%
loan to value with a 5.20% interest rate. The property was
occupied solely by Kohl's at the time of closing, however
the owner had a lease clause permitting them to "recapture
25,000 SF and lease it to another tenant", hence the
deal permitted the borrower to take advantage of the credit
of Kohls and give credit to the income from the second tenant
who was not investment grade. According to Stephen Henderson,
"The borrower wanted to take advantage of the increased
cash flow by exercising their option to recapture the space
and maximize their proceeds. The lender was able to get
comfortable with the structure Tremont proposed."
For additional information on this transaction, please contact:
Stephen Henderson
Senior Director
Email: shenderson@tremontcapital.com
Phone: 860.548.9289
