Recently Closed Transactions from PSRS

Pasha Johnson of PSRS recently arranged a $5M loan for a multi-tenant medical office in Temecula, California. The subject property, a two-story office built in 2004 totaling approximately 27,400 rentable square feet, was converted to accommodate medical tenants in 2019. PSRS was able to negotiate two years of Interest Only on a 10-year Fixed term with a 30-year amortization schedule. Funded with a federal credit union execution, the loan carried no prepayment penalty albeit the property’s limited operating history.

William DeFanti of PSRS arranged the permanent loan of a self-storage facility in Mount Airy, North Carolina. The subject property sits on 7.4 acres and offers 426 rentable storage units. A differentiating factor with this transaction was that 100% of the equity was syndicated by the borrower, with most of the syndicated money coming from 401K and IRA retirement accounts. Many lenders do not allow this but the lender, in this case, allowed for the equity to come out of the retirement accounts. PSRS was able to fund the loan at 70% loan-to-value and provide a 10-year term with a 30-year amortization schedule. A few operational efficiencies will allow the borrower to increase future income, which was appealing to the lender and allowed them to fund a more aggressive loan with a zero-prepayment penalty.

Grady Seldin, CPA of PSRS arranged the $1.7M acquisition financing for an RV park in Apache Junction, Arizona. The subject property, composed of 60 sites, has been recently upgraded by the Seller and is a lease-up value-add play for the buyer. Closed with a bank lender, PSRS was able to secure the loan at 70% loan-to-purchase price and provide a 10-year term with a 30-year amortization. While this was a repeat client for Grady, it was a new borrower/lender relationship where all contingency milestones were met on time with no extensions required.

William DeFanti of PRS arranged the construction loan of a self-storage facility in Memphis, Tennessee. The subject property, originally a two-story industrial building, was acquired and converted into a self-storage facility containing 350 storage units. PSRS was able to secure the high-leverage, non-recourse, 75% loan-to-cost, constructions loan with a term of 3 years Interest Only. Funded in 3 weeks, this loan allowed the borrower to construct the facility and get to a stabilized property so that they could take out the higher interest rate construction lender upon stabilization. The 3-year interest-only loan allowed the borrower to facilitate the business plan in constructing and having appropriate time to lease-up.

Jonny Soleimani of PSRS arranged the $1,025,000 refinance of an office building in Palm Springs, CA. The subject property is a 12,000 square-foot office building situated on a 0.61 acre-lot. Built in 1984, the one-story, walk-up property is currently 100% occupied with modified gross leases. The owner-user only experienced 450 SF of vacancy throughout the first year of Covid-19. Executed with one of our correspondent life insurance companies, PSRS was able to secure the non-recourse loan with a 5-year term and 30-year amortization schedule.