Jeff Glenn, Managing Director with Barry Slatt Mortgage recently closed a $6,000,000 loan in Rancho Cordova, California.
•	The State of California disclosed that they planned on vacating the property once their lease expires in three-years.
•	The sub-market vacancy is 13%.
•	Finding a new tenant to replace a 110,500 square foot building, coupled with the cost of future tenant improvements, could prove to be cost prohibitive.
•	The borrowers own several properties with zero debt. If necessary, they’ve agreed to dispose some of these properties in order to retire the new loan, prior to its maturity date.
•	A tenant improvement reserve structure was put in place.
•	The borrowers agreed to cross-collateralize another property.
•	Charging stations and other related features specific to newer buildings, will be installed, in order to attract future tenant’s.
•	After contacting 17 lenders, we were able to offer the borrower’s conventional financing, based on a 67% loan-to-purchase.
•	Interest only was provided for the first two years of the loan term.
•	A flexible pre-payment penalty, as well as the option to pay-down the loan by 20% per annum, was implemented.