The recourse loan has a two-year initial term and a one-yearextension option. The interest rate is less than 150 basis overLIBOR. One of the brokers in the deal, Mark Wolf of JohnsonCapital's Irvine Office tells GlobeSt.com that the interest rate iswell below current market rates, which are currently 175 points to225 points over LIBOR.

"We caught the market right, just before things started to getshaky," Wolf says. "The quality of the borrower also had a lot todo with it."

In addition to the 100% financing, another interesting part ofthe deal is how Charter dealt with the land prior to the financing.Charter Properties sold the entire property to Lowe's in a dealthat included a re-purchase option that the aforementionedacquisition and development loan allowed Charter to exercise."(Charter) is a savvy developer that wasn't quite sure what it wasgoing to do with the rest of the land," Wolf says. "So it got(Lowe's) to carry the land on their balance sheet until he figuredout his approach."