3 Property Portfolio - Highland Realty Capital Deal

3-Property Cash-Out Refi Portfolio

Properties 1 & 2:  $23,750,000 Cash-Out Perm B-Note
294,000 sq.ft. Multi-tenant Industrial
San Carlos & Belmont, CA

The first two properties of the three-property portfolio consist of 292,000 square feet of multi-tenant industrial across numerous buildings, strategically located in the Mid-Peninsula near El Camino Real and Caltrain in San Carlos/Belmont, CA.

The Sponsor sought maximum cash-out from a high-performing and under-levered asset, but the in-place debt featured an attractive fixed rate including yield maintenance. Highland creatively structured cash-out of $23,750,000 by utilizing a B-note allowing access to the appreciated equity in the property and keeping the in-place A-Note rate.  This avoided a sizable prepayment penalty that would have been incurred by a complete refinance of the collateral. The B-Note is co-terminus with the existing A-Note which is fixed in 4%’s.

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