A repeat borrower with a ground lease interest on a very well located Pilot Travel center needed a cash-out-refinance to capitalize on an investment opportunity.
The challenge was the ground lease interest limited properties value due to below market lease rates originally negotiated. Memorialized in the lease was a significant increase in rent that will occur in just a few months. If the borrower waited until lease rates went up on his property to solidify value, he would lose out on his opportunity to participate in the new investment opportunity.
SFG was able to craft a loan that calculated near future rent increases to provide immediate capital for the borrower.
What We like about the deal:
- Repeat Borrower!
- Solid Tenant with a strong P&L.
- Borrower has a JV partnership with Pilot operations. This provides ample cash flow to service debt.
- Fantastic Location for asset class with deep, repeat customer base.
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