Sean P. Bushe of La Jolla Bank packaged the $805,000 financing, which represents 70% of the loan to value and sold at a 9.25% cap rate. The Taco Cabana franchise, held by Carrolls Corp. of Syracuse, NY, is tied to a 20-year lease to 2520 N. Highway 123 Bypass in the town situated 25 miles northeast of San Antonio.
The borrower is a private investor from California who acquired the property in a 1031 Exchange that closed in December with seller financing for the short term. The La Jolla loan has a 25-year amortization.
Bushe tells GlobeSt.com that La Jolla, as other lenders, has experienced an uptick in triple-net leased traffic this year due to investors, mostly small ones working through 1031 Exchanges. In turn, he says, "the cap rates have gone down along with interest rates in general.
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