Lender closes ALDI ground lease prior to grocery store opening
Need help with maximizing cash flow for your 1031 exchange? We got you covered.
“Our client was in a 1031 exchange after selling a long-time family commercial asset. They were looking to maximize cash flow while generating income as soon as possible. They went under contract on a 20-year ALDI ground lease that was still under construction during the process. We were able to place them with one of our national NNN lender relationships that provided a full-term interest-only (banking institution) loan. The lender has extensive experience lending on ground-leases and funded prior to ALDI finishing their own improvements. This was mitigated by the tenant having commenced their rent and the moderate LTV the client put on the asset.”
-Chris Miller
Deal Quick Look:
Non-Recourse
10 year interest only
No prepayment after year 5 (1% in year 3)
The Property: The subject property consists of a 19,209 SF building leased to ALDI Corporate with a 20-years on the initial term. The property is part of a larger shopping center that has numerous national tenants such as Chipotle and RaceTrac.
The Challenge: The client needed to fund prior to ALDI constructing their own improvements after the landlord finished the site work.
The Solution: Chris Miller, Managing Director for Triple Net Lending, was able to place the loan with a national lending institution that is part of our NNN lender network. Securing a lender that understood the new nature of ground leases was paramount for the client to begin earning income as quickly as possible.
