Bison Arranges High Octane Credit Facility on Wawa Location
|ST. PETERSBURG, FL – Bison Financial Group has arranged a high octane credit facility for a developer of single tenant net leased properties. The first transaction will construct a Wawa gas and convenience store located in the Northeast. Bison secured an investor that underwrites construction loans on single tenant properties leased to tenants they like up to 100% loan to cost subject to 80% loan to value. The investor did not share in the equity on the deal or have a profit participation, just a strict coupon rate of interest. This structure compares favorably to joint venture relationships that have a 75/25 or 50/50 profit split required after a preferred return.
|Bison’s high leverage solution provided our client an alternative to conventional bank financing that requires a developer to invest 25-30-40% cash equity in their deals. This was our 19th closing with the key sponsor of our developer client.
Let us know if you are a developer with more opportunities than your current capital base can cover. The principals of Bison Financial Group can tailor a win-win transaction to bring up to 100% loan to cost financing for the right developer and tenant.