Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Nicholas Coo Coo: “Sale transactions requiring loan assumptions are common due to the fact that the loan prepayment penalty exceeds the marginal value increase if the property were available without the loan or ‘open to new financing.’”

Part 1 of 2

RANCHO SANTA MARGARITA, CA—In cases where landlords know their mortgage is a high-leverage loan, it could create a refinance scenario where ownership is required to inject a large amount of fresh capital, Faris Lee Investments’ Nicholas Coo tells GlobeSt.com. As we recently reported, the firm represented both buyer and seller in the sale of Plaza El Paseo at Rancho Santa Margarita Town Center, a legacy-quality shopping center here, for $56.6 million despite a $32-million encumbrance. In part 1 of this two-part exclusive feature, we spoke exclusively with Coo and Faris Lee president and CEO Rick Chichester about retail deals with encumbrances and advising clients with a challenging loan-assumption scenario. In part 2, we speak exclusively with Chichester and the firm’s Chris DePierro, about helping buyers see a long-term vision in retail properties.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

More from this author


GlobeSt Net Lease Spring 2022Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.