Permanent loans featured seven-year terms fixed for five years at 4 percent
Quantum Capital Partners has secured for a locally based real estate investment consortium more than $22 million in permanent financing to recapitalize a portfolio of five retail properties in Downtown Los Angeles' Fashion District, announced Managing Director Jonathan Hakakha.
The financing was comprised of individual loans, ranging in size from $1.1 million to $8.35 million. The task was to find and structure the apporpriate debt on each asset that would best meet the individual partnerships' specific requirements, according to Hakakha,
"For example, the existing loan securing one of the assets had a significant prepayment penalty that prohibited the sponsor from taking cash out to acquire another asset," said Hakakha. "We found a lender willing to quickly provide a short-term second at a very low rate, that would allow the borrower to take advantage of the small window of opportunity," he said.
Although each partnership was structured differently, Quantum Capital Partners was able to demonstrate the strength and track record of the individual investors to secure financing at competitive rates and terms that would allow each partnership to reduce its cost of capital by as much as 210 basis points.
The loans were funded by three different off-shore lenders. The second trust deed mortgage loan had a three-year term at 4.5 percent. The remaining permanent loans each featured a seven-year term, fixed for five years at 4.0 percent.
# # #
About Quantum Capital Partners
Quantum Capital Partners (www.quantumcp.com) is a leading mortgage banking firm that provides comprehensive real estate finance and advisory services across all major asset classes. With more than $3 billion of debt and equity financing experience nationwide, Quantum's principals have developed a diverse network of capital providers that allows their clients to benefit from customized financing structures that encompass the entire capital stack. Quantum's comprehensive knowledge of the capital markets enables them to deliver expert advice for complex real estate transactions.