CASE STUDIES

Country Club Gate

Loan Amount:
$13,500,000 Fixed Rate Loan
$4,600,000 Variable Rate Loan
Closed: 4th Quarter 2004

Location:
150 Country Club Gate Ctr
Pacific Grove, California

Client:
Fowler Property Acquisitions

Property (Multiple Parcels):
110,000 square foot grocery anchored center
21,000 square foot vacant office building

Assignment:
Bifurcated loan structure:

Fixed rate debt for the retail parcel to preserve the asset value against rising interest rates
Variable rate debt to maintain the flexibility to reposition/sell the unstabilized collateral

Challenges:

Rapid Timing - 1031 exchange borrower equity
76% overall occupancy at the subject, including a 21,000 square foot vacant office building
High leverage - the borrower requesting 80% loan to purchase price
Tertiary submarket with minimal available data

Results: