The asset involved in this transaction is a retail property located in Washington, DC, with a total square footage of 19,000. The loan amount secured for the acquisition is $5,568,500, which reflects a loan-to-value ratio of 70% and a fixed interest rate of 7.25%. The loan term is structured for three years, closely aligning with a lease term of 2.5 years, with no prepayment penalty and a below 1.0x debt service coverage ratio, indicating a unique financing scenario managed by a local bank.

Summary of transaction details:

• Property Type: Retail
• Transaction Amount: $5,568,500
• Loan Type: Acquisition
• Loan Terms: 70% LTV, 7.25% Fixed Rate, Loan Term: 3-Years, Lease Term: 2.5-Years, Below 1.0x DSCR, No Prepayment Penalty
• Market: Washington, DC
• Broker: Alex Mermelstein - Marblestone Capital Group

Alex Mermelstein from Marblestone Capital Group played a pivotal role as the broker in this transaction, utilizing creative strategies to secure favorable loan terms despite challenges presented by the debt service coverage ratio. The extended loan term allows adequate time for tenant improvements or re-leasing, diminishing the pressure of immediate refinancing.