25,000 Sq. Ft. Fitness Center in Port Lucie, Florida
The Investor’s goal was to sell his operating business to a national fitness center organization while maintaining ownership of the real estate. In order to accomplish this, the Investor needed a cash-out refinance to pay off the existing debt and recapitalize. The banks he originally approached were using a 6.5% stress test along with a vacancy factor, which resulted in a lower loan amount. Therefore, requiring more equity into the deal.
By using our pricing engine technology, CommLoan was able to identify several permanent loan options from multiple lending sources. The Sponsor chose a non-banking financial institution option with a non-recourse loan for 3MM at 5.5% for 7 years. CommLoan and the partnered lender were able to facilitate the complex loan closing on the real estate while the national operator finalized the purchase of three locations; expanding into a new regional footprint.