MarketWatch reports: $4.5 million financing for Goodwill retail store.
Envoy today announced the closing of a $4.5 million loan for a new Goodwill of Southern Nevada retail outlet, the first to be funded under a multi-property development credit facility to upgrade the non-profit's store base in the Las Vegas metro area.
“Envoy is in the business of providing real estate developers with the financing they need to help their retailer clients grow,” Cram says. “It’s all the more gratifying when our efforts can support the expansion of an organization such as this — one that helps people stretch their incomes, helps the disadvantaged learn job skills, and helps the environment by recycling items that otherwise would be in landfills."
The first project, a 16,000 s.f. freestanding retail store in Henderson, Nev., will be situated at the northeast corner of Stephanie St. and American Pacific Dr., an intersection that sees 40,000+ cars daily. The location offers easy access for both the neighborhood and greater Henderson customers, being just three blocks south of the I-215 intersection.
Prior to Envoy’s involvement, the borrower was having difficulty securing the necessary construction lend proceeds as traditional banks are hesitant to lend on a construction project backed by non-profit organizations. As a non-bank funding source, Envoy was comfortable providing gap financing based on Goodwill’s business model, professional management and long-term track record of meeting their obligations.
Envoy provided a wide range of net lease financing solutions for developers nationwide, including:
Construction Loans, which offer up to 95% LTC financing in one construction loan with no back-end participation.
Bridge Loans, which provide up to 90% loan-to-purchase price loans for properties in transition.
JV Equity, which offers up to 95% equity financing for BTS net lease transactions.
Envoy finances Walgreens store through innovative bridge loan program.
Envoy today announced the financing of a first mortgage bridge loan for a single-tenant, net-leased Walgreens drug store property in the city of Chicago.
Envoy worked in tandem with its senior bank partner to provide the subordinated “B-Piece” financing that gave the borrower the necessary loan proceeds to close on time to qualify for the tax-free exchange treatment. The bridge loan also afforded the borrower the flexibility to negotiate the lease extension after closing.
“After the successful launch of Envoy’s single tenant construction loan program, our bridge loan program was the natural next step,” says Ralph N. Cram, President of Envoy Net Lease Partners. “As experts on single tenant, triple net lease properties, we understand the risks involved in these transactions better than most lenders. Moreover, being a private lender, we can structure transactions that regulated lenders are unable or unwilling to do.”
Mr. Cram continues, “Envoy’s bridge loan program is tailor-made for short-term situations such as re-tenanting vacant single tenant buildings, net lease property acquisitions with lease extension opportunities, sale/leaseback transactions, and ownership recapitalization.
“With over $70 billion of retail lease obligations expiring in the U.S. over the next four years, we expect significant demand for a flexible capital source that can fund the transition of properties from one retail tenant to another.”
The transaction was the first to be completed under Envoy’s new bridge loan program, and the fourth transaction year-to-date for the company in 2014.
American Mattress financing is Envoy's third transaction under construction loan program.
Envoy is pleased to announce the financing of a first mortgage for one of its net lease preferred clients -- an American Mattress developer -- the third transaction this year under the company's new high-leverage construction program.
The transaction allowed the developer to achieve 94 percent loan-to-cost construction financing for a pre-leased, single tenant 3,500 SF retail store located on an outparcel directly in front of Chapel Ridge Shopping Center in Fort Wayne, IN.
“This is our second construction loan with this developer, and our first where Envoy was the lead lender,” says Ralph N. Cram, Chief Operating Officer of Envoy. “We now have the ability to provide construction financing on a wide range of transaction sizes, from smaller build-to-suit projects, to working with senior lenders on larger transactions where additional funds are needed to secure 90%-plus loan-to-cost construction financing.”
Unlike many financing programs, including those offered by REITS, Envoy's doesn’t require the developer to sell the property immediately following construction. Instead, the developer retains control of the property simply by paying off the construction loan and paying an exit fee. For many developers, this program represents the lowest-cost option for capital when compared to third-party equity and traditional bank construction debt.
With FedEx facility, Envoy makes its first foray into the industrial build-to-suit market.
Envoy's recent closing of a $2 million-plus loan in central Colorado for a FedEx ground package facility marks the company's entry into the industrial build-to-suit market.
The transaction, completed under a new construction loan program serving the capital needs of net lease preferred developers, allowed a FedEx preferred developer to achieve 95 percent loan-to-cost construction financing for a pre-leased, single tenant distribution facility located across from Eagle County Regional Airport.
Envoy worked in tandem with its senior bank partner to provide the subordinated financing as a part of a wrap construction loan for this package distribution facility that will serve the communities around the ski resorts of Vail and Beaver Creek.
“Envoy is pleased to have the opportunity to help FedEx Corp.," says Ralph N. Cram, Chief Operating Officer of Envoy. "And its preferred developer finance their ongoing expansion plans to meet their customers’ needs for faster delivery times.”
Envoy finances retail center in Pittsburgh for $3.4MM through new construction loan program.
Envoy Net Lease Partners, LLC, a real estate finance company specializing in single-tenant, net-leased properties, announces the closing of a $3.4 million loan under a new construction loan program that provides up to 95% loan-to-cost financing to net lease preferred developers. The transaction was completed under Envoy's new High Leverage Construction Program, which provides developers with the capital they need – minus the hassles of dealing with JV agreements or mezzanine loan documentation. See details.