Dealmaker: Barry Slatt Mortgage Secures $41M for Retail, Multifamily Assets
Barry Slatt Mortgage Co., Los Angeles, secured $40.7 million to refinance retail and multifamily properties in California and Washington.
In Palm Desert, Calif., company President Michael Kaplan arranged $11.1 million through a correspondent commercial mortgage-backed securities lender to refinance Plaza Hacienda, a 138,000-square-foot regional shopping center.
Kaplan said the loan request, although low leverage, presented a more challenging assignment to many lenders due to short-term leases with both anchor tenants, Albertsons and CVS. “The lender was able to get comfortable with the short-term nature of the leases due to factors including, but not limited to, the borrower using a shorter amortization period, strong sales and longtime tenancy for both anchor tenants,” he said.
Nick West, Vice President with Barry Slatt Mortgage, arranged a $19 million conduit loan to refinance a shopping center in Los Angeles County’s San Gabriel Valley region. The center is anchored by a grocery store and shadow-anchored by a discount retail store.
The 10-year fixed-rate loan allowed prepayment by defeasance and included normal conduit-style reserves for capex and tenant rollover costs. The loan is non-recourse with standard carve-out guaranties.
West said a major tenant moved from the center several months before the loan closed. The client leased the space to a new tenant, but rent payments will not start until the tenant finishes its build-out several months after the loan closing. The lender addressed this issue by holding back all cash-out until the rent commencement date.
In Vancouver, Wash., Barry Slatt Mortgage CEO Daniel Friedeberg and National Investment Finance Co. President Darryl Horowitz placed a $9.6 million loan on Heatherwood Apartments, a 190-unit multifamily community.
Friedeberg placed the 10-year fixed-rate loan with a life company lender. Barry Slatt Mortgage will service the loan as part of its $3.8 billion servicing portfolio.
