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Dealmaker of the Day
Tucker, Michael
The Alison Co., Newport Beach, Calif., secured $10.1 million for a Southern California portfolio consisting of one retail asset, two industrial assets and one church facility.

Shaun Moothart, vice president with The Alison Co., made the arrangements for the borrower, a Los Angeles-based private investor. He said the borrower used some of the proceeds to acquire a grocery-anchored retail property near Los Angeles International Airport.

"This transaction was the buyer's upleg in a 1031 tax-deferred exchange," Moothart said. "The property purchased measures 34,000 square feet, a relatively small platform store 100 percent occupied by a Ralph's supermarket."

The borrower simultaneously refinanced three properties in Irvine and Costa Mesa, Calif., due to maturing loans. Tenants for the two Irvine industrial assets include OBEY Clothing, Kiva Kitchen & Bath and Brown Packaging. Rock Harbor Church occupies the Costa Mesa asset.

"This financing requirement was no easy task; the borrower expected the lowest possible interest rate as well as the longest amortization and the most flexible prepayment penalty possible," Moothart said. "And some lenders avoid church financing, but we were able to find one who was willing to do it."

For maximum flexibility and to allow for a possible sale at any point, the deal was structured with no prepayment penalty throughout the 10-year term, Moothart said. "In order to accommodate the potential for future sale, we structured the deal as four separate loans with the same 4 percent rate with 30-year amortization so if the borrower were to sell any of the assets it'd be easier for them to trade in and out of the assets," he said.