Dealmaker: Tauro Capital Advisors Secures $50M for Triple-Net-Lease Developers

Tauro Capital Advisors, Los Angeles, secured $50 million in revolving debt facilities for single-tenant triple-net-lease property developers.

Smart & Final.

Managing Partner Stephen Stein and Director Tony Festa arranged the financings.

“Single-tenant triple-net-leased product has continued to emerge as a stable asset class of choice for many investors across the country,” said Festa. “The industry saw a similar trend out of the 2008 downturn and throughout the last cycle, when single-tenant net-leased properties continued to perform and emerged from the recession relatively unscathed and resistant to market conditions.”

Festa noted a similar shift recently as more investors turn to NNN product, “rather than more management-intensive alternatives.”

The three loans arranged included:

–A $25 million facility for local developer in Santa Monica, Calif., that plans to develop additional properties including for tenants 7-Eleven, Starbucks, Dutch Bros. Coffee and Chick-Fil-A. 

–A $15 million facility for a western developer for triple-net developments including Circle K, O’Reilly’s, AutoZone and Starbucks.

–A $10 million facility arranged for a private northern California developer to develop of a variety of major projects throughout California including Starbucks, Grocery Outlet and 7-Eleven. 

Private lenders and debt funds provided all three loans at 100 percent loan-to-cost ratios, giving the borrowers increased liquidity by freeing up otherwise tied-up equity.