Cohen says the $34.77 million loan is sourced from a "largecommercial bank" provided 68% of the total acquisition andrenovation costs, which means the total investment is approximately$51 million. The terms of the three-year loan include two, one-yearextensions and 25% recourse. The loan also includes approximately$4.2 million of future fundings that will be used for propertyrenovations and interest expense shortfalls.

The financing is the fifth such transaction Cohen has securedfor the sponsor in the past three years. The loan was sourced byMark Strauss and Bruce Krall and Kevin Greenberg out of Cohen'sNewport Beach office.

"The major issue we faced was to find a lender that understoodthe TIC structure and how it would work given the value add natureof the investment in this property," says Strauss, a managingdirector with the company. "This was also a very unique anddifficult transaction because we were working in a marketplacewhere financing sources for assets with TIC syndicated ownershipstructures had contracted due to the CMBS market's upheaval."

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