LOS ANGELES-A locally based investor has acquired a portfolio of five NNN-leased Goodyear and Just Tires stores in the Southeast despite a lack of operating history at two of the newly built locations and other challenges, according to Century City-based Verona Capital Markets, which arranged the $7.6 million acquisition loan for the portfolio. Edward Kim, VCM principal, points out that the financing presented a number of challenges, among them “the non-investment grade nature of the tenant, specialty use nature of the collateral, above market rents and lack of operating history for two of the stores that were newly constructed.”

Kim, who arranged the financing along with VCM Associate Michael Weiner, reports that the locally based high-net-worth investor acquired the portfolio in connection with a 1031 exchange. Verona obtained the financing from a private mortgage fund based on the East Coast, arranging a non-recourse, fixed-rate loan with 30 year amortization, which represented approximately 63% of the acquisition cost.

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