Dallas-Based Commercial Real Estate Finance Intermediary Completes Deal for a 25 Property Retail Portfolio
DALLAS, March 12, 2012 — Dallas-based Metropolitan Capital Advisors (MCA), a real estate financial intermediary specializing in the exclusive representation of investors, developers and property owners in the commercial real estate capital markets, has successfully secured a permanent financing package with a CMBS lender for the refinance of the Sunwest portfolio—a collection of twenty-five (25) single and multi-tenant properties scattered across eight (8) states. Of the 25 properties, 20 are owned fee-simple while the rest are subject to ground leases.
The sponsor, Rainier Capital Management, a Dallas investment company that has owned the portfolio since 2004, had a maturing conduit note on a much larger pool of properties (60-plus assets across 15 states). MCA identified and carved out a select pool of assets to finance into a new permanent mortgage. Simultaneous to the refinance, the sponsor consummated nine (9) property sales to pay off the existing debt in full… ALL ON THE SAME DAY!
This creative financing/sale structure increased cash flow of the Sunwest portfolio by substantially reducing the interest rate on the new loan and carving out a large pool of properties free and clear of debt. The management company, Emersons Commercial Management (also based in Dallas) was instrumental in helping close the refinance and sales. Emersons has managed the Sunwest portfolio for over 20 years.
The $19.5 million permanent mortgage has a fixed interest rate for 10 years. MCA structured the financing on a 30-year amortization for the fee-simple properties while placing shorter amortization periods on the ground lease properties. The loans were cross-collateralized to ensure steady cash flow across the portfolio for the lender. MCA Senior Director Sunny Sajnani arranged the transaction.
ABOUT METROPOLITAN CAPITAL ADVISORS
Metropolitan Capital Advisors specializes in the exclusive representation of investors, developers and property owners in the real estate capital markets. Since 1992, Metropolitan Capital Advisors has closed in excess of $8 billion of debt and equity transactions on behalf of a multitude of commercial property owners, developers and investors. National Real Estate Investor ranked Metropolitan Capital Advisors No. 20 on its Annual Top Financial Intermediaries list.
Metropolitan Capital Advisors is staffed with a team of professionals who specialize in specific components of the “transaction process” (i.e. underwriting, marketing, processing and closing). All of Metropolitan Capital Advisors’ senior directors have an average of at least 15 years of professional experience. Metropolitan Capital Advisors’ staff has expertise and capabilities in a vast array of debt and equity services, including construction and permanent debt, structured finance, and portfolio transactions.