Major Tenant Bankruptcy Left a Void - $ 11 million
This flex industrial deal went through some unexpected vacancy when a retail tenant leasing office and warehouse space in the subject filed for BK and rejected the lease, leaving the property 20% occupied. The borrower had a bank loan, but the bank requested the loan be repaid prior to closing on a new construction loan for the sponsor on an unrelated property. The sponsor came to TermSt. looking for a solution. The property was well located and a quick lease-up could be expected, but the property had negative in-place cash flow. TermSt. worked with its network of non-recourse bridge lenders to find a competitive solution with accruing interest until the property was able to pay debt service. The sponsor closed on the loan and then closed on the construction loan the next day. That’s the power of TermSt.!