ValueXpress obtained a $2.8-million first-mortgage CMBS conduit loan that was utilized to refinance a 102,460-square-foot, single-tenant, light manufacturing building located in the Fort Pierce Industrial Park in Saint George, Utah. The building is 100% occupied and leased to Milliken Inc., a textile manufacturing company.
Milliken Inc., a textile manufacturing company, occupies this building in Saint George, Utah.
“The greatest challenge for any sponsor with a single-tenant asset investment property is establishing the credit worthiness of its tenant, and without a long-term lease in place, it’s a difficult proposition for any lender,” commented Dennis Suh, Vice President of ValueXpress. In this case, we were able to overcome two hurdles by first getting the lender comfortable with the credit of a private company with limited financials and, second, by mitigating the risk on a lease that expires in year four of the loan term. The loan transaction was structured as a 10-year term based on a 20-year amortization schedule. Loan-to-value was 60% and the property provides 2.00x net cash flow DSCR on actual income and expenses.