6 Storey Commercial Office / Retail Property (Refinance) – Palmerston North

6 Storey Commercial Office / Retail Property (Refinance) – Palmerston North
Finance

Loan Amount:

$4,384,000

Funding lines

Interest Rate:

7.95% p.a.
Term

Loan Term:

18 Months

Location

Location:

Inner City, Palmerston North

Background

Loan Purpose:

  • Refinance a 6-storey mixed office and retail B grade building in the Palmerston North City Centre.
  • 60% LVR, interest met month-to-month from client cash flow (not capitalised).
  • 3 blue-chip national tenants contribute 30% of the total rental roll and a further 30% of the rent roll coming from other established brands and or government leases.
  • Passing rent more than 30% below market rental due to recent vacancies and some larger leases coming up for market rent reviews in the coming 2 years.
  • Clients did not want to immediately lease up vacancies as they considered a potential conversion of upper-floor office units into residential apartments.
  • Experienced owners with a strong net asset position and strong evidence of servicing capability.