AUBURN, MA-A Virginia buyer takes title to a distribution center here for $7.7 million. The property, which is set on 7.3 acres, carries an eight-year lease with FedEx Ground Packaging Systems Inc. The Indianapolis-based Scannell Properties was the seller.
Jack Sides, a mortgage broker with BMC Capital in Dallas, arranged a $5.7-million acquisition loan on the 10 Westtec Dr. property. He tells GlobeSt.com that buyer Virginia Auburn LP, of McLean, VA, was hoping for a drop in interest rates during the eight-week closing period but saw the yield on Treasury notes rise about 35% instead, which sent loan interest rates up.
"He was betting on the fact that rates would stabilize but that didn't happen," says Sides, noting that the lender worked closely with the borrower to secure a five-year loan with a 74% loan-to-value ratio. No brokers were involved in the trade, he adds.
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