Commercial Loan News
Suntree Plaza Shopping Center
STEELHEAD CAPITAL, INC. ADVISES ON THE FINANCING OF THE SUNTREE PLAZA SHOPPING CENTER IN CITRUS HEIGHTS CA
Commercial Mortgage Summary:
SAN FRANCISCO, CA - July 29, 2006 -- Steelhead Capital, Inc. represented a Private Bay Area Family Trust in its recapitalization of a 35,000 sq ft retail center in the Citrus Heights portion of the Sacramento area. The property was purchased in 2005 as part of a 1031 exchange.
The 1989 single story retail strip center is currently 80% occupied by multiple tenants and is shadowed-anchored by a Walgreens. A majority of the leases are NNN with all having annual increases. The property competes well in the local marketplace with good street frontage and direct access to two of the area's primary traffic and commercial arteries.
The non-recourse loan was structured as a floating rate with a life cap not to exceed 7% with no reserves and a flexible pre-payment penalty which expires after 3 years. The transaction closed in 47 days.
A. Sean Aguilar, CCIM, was responsible for placing the loan and negotiating the terms of the structure. It was important for the client to not have a "conduit type loan" and therefore not be held to a lock out or defeasance provision. This was a conservative leverage transaction and the client wanted the flexibility to sell in the future and not limit the potential buyer pool by requiring a large down payment and therefore delivering a very low cash-on-cash return. This way a new buyer can obtain new financing and better returns therefore allowing the property to be marketed to a larger pool of investors.
Steelhead Capital, Inc. is a premier provider of creative financing solutions and advisory services for commercial real estate investors. Steelhead Capital brings an extensive network of lending sources, structured finance experience with a focus on acquisitions, and a clear commitment to personalized customer service to investors financing properties in any of the 50 states. Steelhead Capital's offices are located in San Francisco, CA. Complete company information can be found at SteelheadCapital.com.
Contact Information:
Steelhead Capital, Inc
415-397-2980 (phone)
415-397-2981 (fax)