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| J.D. Blashaw |
NEWPORT BEACH, CA – MetroGroup Realty Finance, a private
commercial mortgage banking firm based in Newport Beach, California, recently
provided a total of $11.75 million in financing to private investors for three
separate 1031-exchange transactions involving the acquisition of four
single-tenant triple-net lease assets in Illinois and Texas.
The transactions
represent a rising trend of local investors looking outside of California for
this asset class, according to J.D. Blashaw, Vice President of
MetroGroup Realty Finance.
“Cap rates have compressed and, consequently, yields have
declined significantly in California, so we are increasingly seeing local
credit tenant net lease investors seeking higher cap rates and yields on their
investments,” says Blashaw.
“This search has taken them away from their backyards into
other states and sometimes secondary markets, and the passive nature of
triple-net leases matches well with these investors desire to own properties
with little or no management obligations.”
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| Ivan Kustic |
The credit tenant net lease market has perennially been
attractive to 1031 exchange buyers seeking safe, long-term and passive
investments for their capital, Blashaw says.
The firm arranged financing for the following properties:
5001 N. Big Hollow Road, Peoria, Illinois
MetroGroup
Realty Finance provided $5.8 million in permanent financing to a private
investor for the acquisition of a 46,432 square-foot stand-alone retail
building at 5001 N. Big Hollow Road in Peoria, Illinois, as part of a 1031
exchange transaction. The property is fully occupied by a Best Buy retail
store.
The 6.25-year fixed rate recourse loan at 75% loan-to-value
features a 25-year amortization and a flexible prepayment provision that
expires after three years.
The financing was arranged by J.D. Blashaw and Ivan
Kustic, also Vice President at MetroGroup Realty Finance.
4160 S. Archer Avenue, Chicago, Illinois, and 601 N.
Harlem Avenue, Oak Park, Illinois
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| Best Buy retail store, 5001 North Big Hollow Road, Peoria, IL |
MetroGroup Realty Finance provided $3.4 million in permanent
financing to a long-time private investor client for
the purchase of two TCF Bank branches in the Chicago market: $1.825 million for a
2,542 square-foot property at 4160 S. Archer Avenue in Chicago, Illinois,
and $1.575 million for a 2,700 square-foot property at
601 N. Harlem Avenue in Oak Park, Illinois.
Part of a 1031 exchange transaction, the properties, which
are 100 percent occupied by TCF Bank, were sold by Chicago-based Clark Street
Real Estate.
The loans were a combined 47% loan-to-value and feature a
10-year fixed rate and 30-year amortization. The financing was arranged by J.D.
Blashaw and Ivan Kustic at MetroGroup Realty Finance.
1006 E. Interstate 2, McAllen, Texas
1006 E. Interstate 2, McAllen, Texas
MetroGroup Realty Finance also provided $2.55 million in permanent
financing to a private investor for the purchase of a 10,050 square-foot
medical office building at 1006 E. Interstate 2 in McAllen, Texas as part of a
1031 exchange transaction.
The property was developed in 2017 by the seller, DaVita
Inc., the real estate division of the tenant, and is fully occupied by DaVita
Dialysis in the sale/leaseback arrangement.
The 10-year fixed rate loan at 70% loan-to-value features a 25-year amortization and limited recourse. The loan was arranged by J.D. Blashaw and Ivan Kustic of MetroGroup Realty Finance.
CONTACTS:
Alex Caswell/Lexi Astfalk
Brower Group
(949) 438-6262
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