Dallas, Texas-based Metropolitan Capital Advisors (MCA), a financial intermediary specializing in the exclusive representation of investors, developers and property owners in the commercial real estate capital markets, has a successfully secured a self-amortizing financing package with Southwest Bank for the refinance of the Sunwest Leasehold Portfolio—a collection of nineteen (19) single and multi-tenant properties scattered across six (6) states. All nineteen properties were subject to ground leases. The properties within the Portfolio are subleased to a variety of tenants including national, regional and local credits.
The Sponsor, Rainier Capital Management, a Dallas, TX based investment company that has owned the Portfolio since 2004, engaged MCA to secure a leasehold mortgage to refinance existing, high-rate bridge and mezzanine financing. As several of the ground leases have nearing expiration dates, MCA was able to secure a fixed-rate, leasehold mortgage that self-amortized over a 7-year term.
This creative financing structure was attractive to the Sponsor by substantially reducing the interest rate on the new loan and reducing ongoing debt exposure as the ground leases expired. The management company, Emersons Commercial Management (also based in Dallas, TX) was instrumental in helping close the refinance. Emerson’s has managed the Sunwest Portfolio for over twenty years.
The $6.0mm leasehold mortgage has a fixed interest rate for 7 years at 4.75% with partial recourse to the Sponsor. The loans were cross-collateralized to ensure steady cash flow across the Portfolio for the lender. MCA Senior Director, Sunny Sajnani was responsible for arranging the transaction.
Since 1992, Metropolitan Capital Advisors has closed in excess of $9 billion of debt and equity transactions. National Real Estate Investor Magazine has consistently ranked MCA as one of the top CRE Financial Intermediaries in the US. MCA has already completed over $350,000,000 of commercial real estate financing during 2013.