Steve Henderson, a senior director with the Boston-based Tremont, arranged the $2.7 million loan, which was funded through a national bank that he declined to identify. The 10-year loan provided for approximately 75% loan-to-value with a 5.25% interest rate. While declining to identify the entities involved, "the transaction was a perfect fit for both parties involved," according to Henderson.
"The borrower was seeking proceeds on a fixed rate basis to buy out an existing partner, while the lender was seeking to add more office/industrial type assets to their portfolio," Henderson says. "The challenge was getting the lender comfortable in a market that had extensive vacancy in this product type.
"These issues were mitigated by the history of the building and the experience of the operator," he continues. "We emphasized the barriers to entry and that the property's smaller blocks of space compared favorably with the larger 'big boxes' that were driving market vacancy."
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