Challenge of the assignment:
At the time of closing, a structural remediation program to mitigate foundation movement was only 50% complete. In addition, the majority tenant at the property (85% of GLA) had an open termination option which they could exercise at any time.
Landmark Capital identified a lender that was comfortable with the sponsor’s ability to complete the remediation and negotiate new leases with the existing tenants. The financing enabled the owners to partially pay down their equity partner’s capital account to bring down the all-in cost of capital to the transaction.