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A real estate owner based in Atlanta looked to RFG to secure mezzanine financing for its class A retail property located in Georgia. The quality of the property and its rent roll meant that the borrower had numerous mezzanine options from which to choose. Ultimately the real estate owner chose to close with financing provided through the mezzanine program of one of RFG's lenders.
The decision was easily made based on the lender's willingness to provide higher leverage - 97 percent LTV, more flexible terms, lower rate certainty and speed to closing over its competitors. The mezzanine financing was structured to be subordinate and coterminous with the $12MM senior CMBS financing and allowed for repayment at anytime after twelve months without penalty.
Acquisition Financing: RFG Secures $960,000 for NC-Based Retail Property Remington Financial Group's small loan program originated acquisition financing to complete the purchase of a retail property in North Carolina. The principal was aware of RFG's ability to secure financing for extremely challenging transactions and engaged the firm to secure financing for his first commercial investment property.
The deal posed many challenges: the borrower had no experience, below average credit and very little net worth. However, it had a sales contract on a solid real estate property at an attractive purchase price. The strength of the property and the borrower's demonstrated business experience throughout the financing process helped RFG get comfortable with the deal. As a result, RFG structured $960,000 senior and mezzanine financing which represented a 95 percent LTV when combined with the seller financing which occupied a third mortgage position. The senior and mezzanine financing was provided at a blended rate of 7.75 percent over a seven year term and 25 year amortization.
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