First Trust Deed collateralized by an approximately 110,000 square foot Sears building in Silverdale, WA (about 37 miles west of Seattle, WA). The site is part of a larger, nearly 1,000,000 square foot mall known as the Kitsap Mall. Current tenants of the Kitsap Mall include Dick’s Sporting Goods, Buffalo Wild Wings, Zumiez, American Eagle, Verizon, Macy’s, Spencer Gift, H&M, JCPenney’s, and Kohl’s among many others. Prior to this transaction closing, Sears will sign a short term (less than six month) lease to wind down operations. Our borrower, Rhino Holdings Silverdale, LLC, an affiliate of GGD Oakdale, is currently working with three tenants which would occupy the building in its entirety. Hobby Lobby and Harbor Freight are two tenants the borrower is negotiating with to sign new, long-term leases. Burlington Coat Factory, the third tenant for the space has yet to sign their letter of intent to lease the space. In order to get the building ready for the tenants, the borrower has budgeted nearly $5,000,000 of capital improvements. In addition to the building, the borrower is acquiring the 10+ acres of land surrounding the building that is currently a parking lot. It is the intent of the borrower to work with the mall owners and the city to get two outparcels approved for construction.
Loan Amount: $14,700,000
Yield: 10.5% (Principal Balance ≥ $100,000); 10.0% (Principal Balance < $100,000) 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 two optional nine-month extension periods at maturity.