Hi. I am a Commercial Lender. All things related lending. I am an underwriter and enjoy talking about deal structuring or ways to "get a deal" financed- so do not confuse with narcissism- ha. I AM NOT LOOKING FOR LOAN REFERRALS so please don't ask. I just enjoy talking about commercial real estate from the finance side of things as a banker- even off work. I can pretty much tell you "generally" what will fly and what will not from an underwriter/bankers point of you. HARD MONEY- who cares. So if this thread is useful, i would like to talk about what you got going on? Tell me your CRE situation....

Ok, I will take the bite.

We recently listed this property:

http://www.creforum.net/modules/newbb/viewtopic.php?topic_id=1240&forum=16&post_id=2443#forumpost2443

What do you suggest to the potential buyer? Assume or Re-apply? What kind of LTV will this yeild? at what interest rate?

Of course, it will depends on what cap will this end up with.

Jack- thanks. Couple things. Owners Peter and Linda so i have the same subject building? According to GSA, the lease says it has a termination 12/31/2012 and 100% occupant on 16,271 total space with 35 parking structures? You said 20K feet? I am not aware of expense stops, etc that would cause concerns on the buyer side. There appears to be 50 GSA buildings in the EAST bay region covering 1MM feet of space. Although not all DEA-granted. But a concentration nonetheless if a consolidation took place. On the assumable loan, is it a variable, what is terms and amort? I assume a fee will be charged to buyer taking down the assumable. I will run some economics, i generally look for a 12% min return. But will see what we come up with. I generally shy away from full service leases anymore..... Is there a way to load up a spreadsheet here?

Ryan

Hi Ryan,

Yes, you are right on the property. Except that current Lease ending date is 4/30/2013, the 12/31/2012 date is the Termination Right Date, so in fact thre is approx. 3 years left on the lease. And Windsor is not East Bay, it is Sonoma County, we call it North Bay.

I represent the building size is 27K SQFT, however you want to cut it. Fed. Leased building is different from others, the building was built to suit and should not be appraised the same way as a normal commercial building.

I did not know you are a private money or a bank. Eitherway, thanks for your assessment.

I did speak to a friend of mine, he is totally familiar with the building, sold and financed several projects built by the same developer, he actually had the entitlement papers for this building, but he did not sell it to Peter and Linda.

Over here, you can only link to a file, after you upload the file to a third party hosting site. Or I can post it for you if you email the files to me jack@twkinc.com

If the loan is secured then lenders will look at the collateral and how likely they are to get their money back from resale. The industry is an issue, if a person wants money for a restaurant that is usually a riskier business than others for example.

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