An OfficeMax in Southeast Texas with a Triple Net (NNN) Ground Lease had an issue. First, it was in a tertiary market and not in a major market area. Second, it had a shorter lease term than what everyone in the marketplace was comfortable with.
This would qualify for our USDA loan program because it would be in a USDA-eligible area and we at least had 1:1 collateral coverage. We provided a 30-year loan for $7 Million with only a Personal Guarantee (PG) from the guarantor and a corporate guarantee on the lease.
Incase you were wondering, 97% of U.S. land mass is eligible for a loan from the USDA for $2 million to $25 million as long as you operate in a community of 50,000 or fewer!
We Won't Waste Your Time
Let me be blunt. Here at Ivanhoe Capital, we structure deals to close and we don't waste you or your client's time. We want to get deals done and if we can't, we let you know RIGHT AWAY and WHY!