CHICAGO – Mag Mile Capital is pleased to announce that the boutique commercial real estate mortgage and investment banking firm has closed on a $7 million, non-recourse CMBS permanent loan for the A Gold Mine Storage facility in Sonora, California.
The 10-year, fixed-rate loan is interest-only for the first two years and was originated and closed by Mag Mile Capital Senior Vice President, Mac Dobson. The financing closed at a 5.55% interest rate, and 70% loan-to-value ratio, with a 30-year amortization.
Located at 18600 Eagle Ridge Dr. in Sonora, the 486-unit, 105,000-square-foot facility offers RV, boat and self-storage options. The borrower used the new financing to refinance existing bank and higher-interest-rate private investor debt, remove recourse and monetize the value he has created, since developing the property in stages over the last decade. He walked from the closing with several million dollars of cash out.
“This is a beaufitful and well-managed property that the visionary owner developed and financed in phases over time, with 160 of the units opening in late 2017,” said Dobson. “Despite a large portion of the units coming online so recently, we were able to consolidate all of the existing debt into one loan without the burden of personal guaranties, reduce the owner’s blended rate and position him to rest easy for the next 10 years.”
Sonora, California is in the Sierra Nevada Foothills in the heart of California’s “Gold Country.” Settled by miners from Sonora Mexico in 1848, the historic city is convenient to Yosemite National Park and is the commercial, government and cultural center for the region.
About Mag Mile Capital
Chicago-based Mag Mile Capital is a full-service commercial real estate mortgage and investment banking firm. The boutique firm offers preferred access to best-in-class debt placement, equity arrangement, tax credit syndication, real estate brokerage and advisory through a high-touch, disciplined approach that leverages its extensive lending relationships and deep-rooted client and equity sponsors. During the past 27 years, team members have collectively funded over $8.5 billion in debt, equity, tax credit and mezzanine financing for hotel, multifamily, office, retail, industrial, healthcare, self-storage and special purpose properties throughout the United States, Caribbean and Europe. For more information please visit www.magmilecapital.com.