Retail Midwest

Wool Finance Partners arranges financing for Long Grove retail center acquisition

43523

Wool Finance Partners' Gary Wool and Martin Siegel arranged a creative financing structure that included a $2.39 million financing package for the acquisition of Long Grove Commons in Long Grove, Illinois.

Wool Finance Partners' Gary Wool and Martin Siegel arranged a creative financing structure that included a $2.39 million financing package for the acquisition of Long Grove Commons, a 9,800-square-foot, 94 percent leased retail center in Long Grove, Illinois.

The loan package provided 100 percent financing including a combination of a first mortgage loan and a practice loan which provided not only the equity in conjunction with the purchase but also additional capital for the buyer of the property.

The lender, a local bank, underwrote the loan based upon not only the value of the real estate but also the successful dental practice of the buyer who also was an existing tenant in the property.

The loan structure provided for a $1.49 million conventional mortgage for the real estate based upon a 75 percent loan-to-value ratio, and a five-year term at 4.5 percent. The package also included a 10-year practice loan for $900,000 for the buyer.

In addition to conventional first mortgage financing, Wool Finance Partners’ principals also structure forward-funding loans, participating mortgages, joint ventures, construction loans, tax-exempt bond financing, stand-by commitments, acquisition and development loans, mezzanine financing, pre-sales and asset sales.