The collateral for this loan is 210,000 square foot shopping center. Located in Rockford, IL about 80 miles west Chicago, IL. The property is home to national retailers like Burlington Coat Factory, JoAnne Fabrics, Petsmart, Dollar Tree, and Old Chicago Pizza. The current owner is facing an imminent foreclosure after a few unsuccessful attempts at selling the property. The borrower has negotiated Burlington Coat Factory to downsize its space instead of moving out. In addition, the borrower is relocating JoAnne Fabrics to allow for two new tenants to occupy the property. Once the two new tenants are in, the property will be 92% occupied. Although neither of the new tenants have signed a formal lease, they both have worked with the borrower numerous times in the past and are expected to execute leases within the first six weeks of the borrower’s ownership. In addition to increasing the occupancy of the property, the borrower will add additional value by renovating the entire exterior of the asset. With nearly $4,000,000 in improvements to the property, the asset will be well positioned to be refinanced with cheaper sources of financing or sold on the open market.
Master Loan Amount: $13,100,000
Yield: 10% interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: Nine months with an optional nine-month extension at maturity. Final maturity date is 9/8/23.