Landmark Capital is pleased to announce a successful recapitalization of a flex office building.
Challenge of the assignment included:
The transaction was a recapitalization and restructuring of a legacy tenant-in-common investment that had been in bankruptcy. At the time of closing, the property was approximately 50% complete with a structural remediation program to mitigate foundation movement that was the result of expansive soils and defective construction. 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 Advisors identified an equity partner that closed all-cash with the sponsors within 3 weeks. The financing enabled the owners to pay off their existing debt, re-commence the remediation work, and fund a TILC reserve to negotiate new leases with the existing tenants. The financing also contained a feature to enable the bulk of the investment to be refinanced out shortly after closing with traditional bridge debt to bring down the all-in cost of capital to the transaction.