Loan Scenario

CCG was chosen as mortgage advisor to arrange a $10,500,000 cash-out refinance for an office building in Los Angeles, CA. The property was primary leased to a payroll company with a long-standing occupancy, and 15% to the owner's company which was used infrequently for client meetings and storage. The building had a $21,000,000 valuation and an owner that demanded extremely competitive terms with conditions waived that would be standard for any other similar transaction.

Challenges & Solution

The building was leased 85% to a non-credit tenant that refused to provide financials and had near-term lease rollover risk. The owner requested non-recourse on the loan, and even no personal guarantee on the owner-user lease, nor was he willing to provide personal financials or credit for lender review. The current debt was only $3,000,000 which resulted in a large cash-out request of $7,500,000 for unrestricted personal use funded as a lump sum at closing. The client spent 4 months trying with other lenders before contacting us.

CCG was able to capitalize on a long-standing debt fund relationship to justify that the majority tenant had a long history at the property and negotiated favorable reserve and trigger events to get the lender comfortable with tenancy. The top market location, 50% LTV and proof of substantial borrower liquidity helped to get the large cash-out approved with minimal documentation that would usually be required. Our team leveraged our managed bid process to negotiate and secure very competitive terms and flexible conditions for our client.