|DATE OF FUNDING||11/11/13|
|GROSS LOAN AMOUNT||$7,980,000|
|LOAN TO VALUE||60.0%|
$7,980,000 FOR DISCOUNTED PAYOFF
& LEASE-UP OF A RETAIL PROPERTY IN CHICAGO, IL
Borrower sought $7,980,000 in discounted payoff and lease-up financing of a 31,452 square foot class “A” grocery-anchored retail property. Borrower built the mixed-use retail and condominium property in 2008 at a cost in excess of $50,000,000, and has about $6,500,000 of total equity in the property. First Bank and Parkway Bank provided a construction loan of $42,500,000 and a third bank, National City contributed $2,900,000 as a community investment loan in 2006.The 110 condominium units have all been sold and the retail property had an unpaid principal balance of $20,500,000. Since the existing loan balance greatly exceeded the value of the retail property, the borrower was able to negotiate a $6,500,000 discounted payoff, equating to a $14,000,000 discount. At closing time, the borrower signed two new leases bringing the property to 75% occupancy with net operating income of $548,901. The tenants have signed long term leases, with the earliest lease expiring in 2018. The anchor tenant is a credit-rated grocer called Aldi that does over $53 billion in global revenue and owns the Trader Joes Company. Aldi occupies 49.7% of the property with its lease expiring in 2023.