ValueXpress has arranged a $1.5-million CMBS conduit loan for the refinance of a 17,512-square-foot neighborhood retail center located in Las Vegas, Nevada. The property was constructed in 1989 and is located less than four miles northeast of Downtown Las Vegas.
The property, purchased by the sponsor in 2015, was 45% occupied and in distress at purchase. The sponsor immediately embarked on a $100,000 property improvement plan that included new stucco siding and paint, new tenant storefronts and awnings, and paving the parking lot. Over a 24-month period, the sponsor was able to lease the property to 100% occupancy with 10 tenants.
The sponsor purchased the property and completed the property improvements primarily with cash on hand. The purpose of the refinancing was to provide cash-out proceeds to return the sponsor’s equity in the project and provide a 10-year loan term at an attractive fixed interest rate.
“The transaction was completed through our Fixed-Fee CMBS program,” commented Michael Sneden, Executive Vice President of ValueXpress. “Usually the transaction costs for third-party reports and lender legal charges are too expensive for small balance CMBS loans, but this program fixes those costs at $25,000, saving $10,000-$25,000 over typical CMBS loan programs.”
The Fixed-Fee CMBS program is available for all typical CMBS conduit loan assets in loan amounts of $1.5 million to $12 million.