CASE STUDIES

Grocery Outlet
Flagship Store/Headquarters

Loan Amount: $7,000,000 Closed: June 1, 2009 Location: University Avenue Berkeley, California
	Client: Read Investments
	Property: A two-story, 40,000 square foot building on University Avenue in Berkeley. Principals of Grocery Outlet own the property and lease the ground floor to Grocery Outlet as a retail location and the second floor as the headquarters of the 129 store chain.
	Assignment: Secure fixed-rate, long term financing to replace maturing debt.
	Challenges: Single tenant building Owner/tenant relation construed by many as owner/user High loan per square foot Deteriorating financing environment
	Results: $7,000,000 Interest Rate: 6.25% Term: 7 years Amortization: 25 years Recourse to corporate (no warm body) entity 1% lender fee 1% prepayment years 1-4, open at par thereafter