MONTGOMERYVILLE, PA-Horsham-based GMAC Commercial Mortgage Corp. provided $5.4 million in fixed-rate, permanent financing for a newly built, 41,000-sf property leased long term to Irvine, CA-based LA Fitness. The property owner, General Hancock Partnership Enterprises, a private partnership, received the long-term, self-amortizing loan that matches the tenant’s lease term.
The facility has parking space for 299 cars and is located at the intersection of Bethlehem Pike and Lower State Road here, a quarter mile from the Montgomeryville Mall. Edward Riedlinger, SVP and managing director of GMACCM’s Philadelphia loan origination office, arranged the transaction through GMAC Institutional Advisors. The interest rate and term of the loan are undisclosed.
“Traditionally, many lenders would have difficulty financing this kind of specialty property,” Riedlinger says. GMACCM was able to provide the funding, he says, “because we recognized the great location. Overall, it was a win-win for the landlord providing a significant stabilized cash flow for the long-term investment at a very attractive interest rate.”