Cronheim Mortgage Secures Financing for Three North Carolina Walgreens Locations
David Turley and Janet Proscia secured three individual CMBS loans for Walgreens locations in North Carolina.
Our client was seeking to refinance CMBS debt with near-term maturities. All leases are obligations of Walgreens Co. and have approximately 11 years remaining. We obtained $2,850,000 for one location having an 11,004 square foot building and excellent highway frontage. A second, 9,837 sf box got a $2,700,000 loan; it is directly across from a Food Lion Supermarket. Lastly, $3,150,000 was secured for the 9,949 square foot Walgreens at a highly visible signalized intersection. All loans were non-recourse and they were not cross-collateralized, which was a significant deal point given differences in the ownership structures of each entity.
Janet Proscia commented, “Even with the credit of Walgreens, the challenge was that we had three small deals with only 11 years left on the leases and an inability to cross the loans. Ultimately, we were able to get the lender comfortable with the 70% leverage and real owner equity in the deals.”