(To read more on the debt and equity markets, click here.)
DALLAS-A 17-property retail portfolio in the Southwest and Westis collateralizing a $30-million refi, funded by a private bondsale to 10 US investors. The deal's dynamics include an 87%loan-to-value ratio and a 1.05x debt-service coverage.
Jonathan Morris, president of locally based BMC Capital LP,tells GlobeSt.com that the high-leverage, low debt-service coveragewould only have been possible with the bond offering. "It waslooked at more as corporate debt than real estate," he explainsabout the financing strategy. "That's how we got the really highLTV and really low debt-coverage ratio. Instead of usinginstitutions that finance real estate, we used the financingcommunity that finances corporate debt."
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