UC Funds closes their second UC GO loan with the refinancing of a Kohl’s retail building in Texarkana, Texas
Texarkana, TX – May 28, 2018 – UC Funds, a vertically-integrated commercial real estate specialty finance firm, announced today the closing of a $5.8 million first mortgage bridge loan for the refinancing of an 89,008-square-foot Kohl’s retail building within Richmond Ranch, a shopping center in Texarkana, Texas. The property is located at 2525 Richmond Road in Bowie County, which spans the border of Texas and Arkansas. The sponsors, Martha Abbot and Steve Avars, have been involved with Richmond Ranch for nearly two decades, and currently control 11 acres of developable land within the fully tenanted center.
UC Funds used their new industry-leading product UC GO to finance the deal. The underwritten property value of $8.1 million yielded a 71.6 percent loan to value (LTV) on UC Funds’ fully funded loan amount. The non-recourse loan represents $65 per square foot of the property, which is 50 percent lower than comparable trades. Launched in July 2017, UC GO is the lowest rate, most competitive commercial mortgage product available in commercial real estate today. The commercial mortgage bridge loan is available at 85 percent LTV and 0.5 debt service coverage ratio (DSC).
The healthy in-place cash flow made the asset an attractive investment for UC Funds, with approximately $525,000 of net operating income (NOI) in-place before reserves. This is corporately guaranteed by Kohl’s over the next 10 years.
“Using a past relationship combined with our creative approach to UC GO, we were able to form a mutually beneficial deal,” said Domenico Manago, Director of Origination at UC Funds. “This is our first deal with these sponsors and with its promised success I’m certain there will be more to come.”
Texarkana serves as a regional hub in a highly populated area of northeastern Texas. Richmond Ranch is situated less than a mile away from Texarkana Community College, which enrolls 5,000 students, and is only a few miles from the Texas A&M University-Texarkana campus, which has 2,000 students currently enrolled. The new Kohl’s will benefit from its location within the 1 million-square-foot retail power center, surrounded by neighboring big-box stores such as Target and Bed Bath & Beyond.
“The refinancing of Kohl’s in Texarkana marks our second deal closed with UC GO,” said Daniel Palmier, President and CEO of UC Funds. “UC GO’s flexibility, speed, and reliability made it easy for Martha and Steve to choose UC Funds as a partner, and we expect to see great success and future endeavors result from this collaboration.”
Providing over $2 billion of capital solutions to date, UC Funds is known as the “go to” commercial real estate capital provider and the most sophisticated financial ally in the industry. Their team is dedicated to developing and maintaining long-term relationships with borrowers, and the company has earned a strong reputation for providing extensive reliability, standing by borrowers through completion. Those interested in learning more about UC Funds can visit www.UCFunds.com.
About UC Funds
Founded in 2010 by Daniel M. Palmier, UC Funds is a vertically integrated commercial real estate specialty finance firm that originates, structures, underwrites, and asset manages its estate investments. A national balance sheet provider of both debt and equity capital solutions, UC Funds has provided over $2 billion of capital solutions to date. UC Funds offers quick and customized financial solutions throughout the entire capital stack, including joint venture equity. One of the nation’s most entrepreneurial lending institutions, UC Funds focuses on multifamily, retail, office, hotel, industrial/warehouse, adaptive reuse, and construction assets nationwide. The firm has developed strong relationships with past and current borrowers through their renowned customer service, creativity, speed, and reliability. In July 2017 UC Funds announced the launch of their industry leading non-recourse commercial mortgage bridge loan, UC GO. This is the most transformative and competitive commercial mortgage product available in commercial real estate. The variable rate non-recourse product, which starts at LIBOR +350, is available for loans as little as $5 million. To apply for UC GO financing, please contact Domenico Manago, Managing Director of Sales, at 857-288-2811 or email Dmanago@ucfunds.com. For more information on UC Funds, visit www.UCFunds.com or https://danielpalmier.ucfunds.com/.