Lender Spotlight: Mutual of Omaha

Mutual of Omaha is staying very busy.
Most of their business has been done on multifamily and industrial - which they're still quoting and competing on.
With all of the other business they've been doing, they want to do more retail- strip retail, grocery-anchored retail, and other types.
For low-leverage transactions (multifamily and industrial) they can still get down to a 170-175 spread, but much of their business is in the 190-210 spread range over the 10-year treasury (5.75-5.95%) today.
Lending on office assets is on pause, but they expect to be back in the market later in the year.
Program Highlights: Rate lock on term sheet, long-term fixed rates (10 years+), step-down prepayment available.
Short-term fixed rates like the 5-year and 7-year have spreads closer to 225-235 over the corresponding treasury.

Seth Ludwick of PSRS arranged the $20.1 million acquisition financing of a business park in Tempe, Arizona. The subject property is a 202,507 square-foot flex business park in the burgeoning high-tech manufacturing corridor of the Phoenix MSA. Constructed in 1997, the business park is 10 minutes from Sky Harbor Airport and within three miles of the Arizona State University campus. Financed with one of our correspondent life insurance companies, PSRS provided its borrower a non-recourse loan with a seven-year term, 30-year amortization, and one year of interest only. The borrower is a SoCal-based investment company that acquired this property to grow its Phoenix portfolio.

Michael Thorp, Principal at PSRS – Newport Beach, CA, has arranged $14.5M in permanent debt for Central Valley Plaza, located in Modesto, CA. The asset is anchored by Walmart and Kohl’s, along with a large cast of other national and regional tenants. Located just off the 99 in the heart of Modesto’s retail corridor, the center enjoys easy ingress and egress, with excellent visibility from the freeway. Half of the asset sits on an unsubordinated ground lease, with the other half sitting on fee simple dirt, making this deal more challenging than most. The 10-year loan was placed with a life insurance company for whom PSRS is a correspondent. Michael Thorp stated, “This is a phenomenal asset, which is owned by a phenomenal real estate development company. Coupled with the location, the tenant lineup is one any lender would be happy to lend on – the thing that made this transaction a bit more difficult was that half of the asset sits on an unsubordinated ground lease. Given that fact, we had to select one of the best-unsubordinated ground lease life company lenders in our company’s correspondent system. At the end of the day, both borrower and lender wound up with a great deal.”