Cornerstone Realty Consultants arranged a $2.2 million loan for its client allowing for the refinance of a triple net leased Walgreens retail condo in the city's South End neighborhood. Located at 1603 Washington St., Walgreens benefits from its frontage along one of the South End's main thoroughfares as well as its location next to the South End Community Health Center.
With the expiration of prepayment penalties, the borrower saw an opportunity to replace the existing debt, which encumbered other retail condos at the property, with more attractive financing available in today's lending environment. The strength of the Walgreens credit combined with the 10 years remaining on the current term of their lease made this an attractive lending opportunity for local and regional lenders.
Cornerstone was able to obtain attractive non-recourse financing for its client by structuring a 7 year fixed rate loan with a 5.85% interest rate and a 25 year amortization.
In addition Cornerstone arranged a $1.6 million loan for its client allowing for the acquisition of a 12 unit apartment building in Somerville. The three story brick building located at 259 Summer St. features primarily two-bedroom apartment units and 15 on-site parking spaces. The property is sought after by potential tenants as it is situated a short walk from both Porter and Davis Sqs.
The prospect of adding 12 units to his portfolio in such a sought after location made this a desirable acquisition for the buyer. Strong historical occupancy and synergies with his existing portfolio furthered the buyer's interest in the acquisition opportunity.
Cornerstone was able to obtain acquisition financing for its client by structuring a 5 year fixed rate loan with a 5% interest rate and a 30 year amortization. The total loan commitment equated to a loan-to-value of 75%.
Cornerstone specializes in structuring and sourcing innovative financing for all property types. In addition, Cornerstone provides 1031 exchange consulting and acquisition services.