LFB recently arranged $1,400,000 in permanent financing for the acquisition of a newly constructed Grocery Outlet store in the Riverside area of Southern California. The building is an 18,000 square foot, single-story, big box store on roughly 1.7 acres. Grocery Outlet has an in place 10 year lease with 3, 5 year extensions. At time of funding, Grocery Outlet had recently moved in and the store was operational.
Part of the challenge with this financing was the multiple downleg assets our client had to exit in order to make the timing and financing of the subject property successful. LFB worked hand-in-hand with the borrower to facilitate a floating proceeds figure until all such downleg sale proceeds could be accounted for.
LFB was able to structure a 10-year loan priced at 4.0%, fixed for the full term. The loan was non-recourse and has a standard stepdown prepayment penalty structure.