Location:
1700 and 1800 Green Hills Road
Scotts Valley, California
Client:
Fowler Property Acquisitions
Property: Two, 2-story office buildings containing 138,705 rentable square feet situated on 10.5 acres of land fronting California State Highway 17
Assignment:
Arrange high leverage floating rate acquisition financing to include capitalization of project transaction costs, TILC, capital improvements, debt service shortfall and operating deficits
Challenges:
75% vacancy with short term leaseback for 25% of the space
Healthy but small market
Older improvements not easily accessible from State Highway
Results:
$17,500,000 (90% LTC)
Term: 3 years
Amortization: Interest plus 100% of excess cash reducing to 50% when NOI divided by loan amount exceeds 10%
Prepayment: Locked for 18 months; open at par thereafter; partial release provisions
