Press Release

Waterway Capital 2019 Year-End Update

January 16, 2020

Waterway Capital, LLC finished 2019 on a high note, closing 6 transactions in the month of December. Overall in 2019, Waterway closed just under $1 billion of credit tenant loans, ground lease financings and other lease-backed products. Highlighted below are select transactions from the second half of 2019:

 

Amazon.com, Inc. – Seattle, WA

$157,391,000

  • Debt financing for the leasehold interest in a 317,804 square foot office building
  • 5.0-year term / 2.6-year average life
  • Located in the South Lake Union neighborhood
  • Structure included a commercial mortgage and a credit tenant loan

New York City Department of Education – New York, NY

$30,705,000

  • Debt financing for a 40,000 square foot, six-story school
  • 18.8-year term / 11.5-year average life
  • 1.11x debt service coverage
  • 63.9% loan-to-value ratio
  • Structured as a credit tenant loan

Costco Wholesale Corporation – Cherry Hill, NJ

$23,897,000

  • Debt financing for a 13.9-acre parcel containing a Costco store and gas facility
  • 25.9-year term / 17.9-year average life
  • An insured balloon provided additional amortization
  • 89.3% loan-to-value ratio
  • Structured as a credit tenant loan

Mixed-Use Property – Philadelphia, PA

$18,500,000

  • Debt financing secured by the leased fee interest in the land underlying a mixed-use building
  • 36.2-year term / 26.8-year average life
  • 89.8% loan-to-value ratio
  • Structured as a rated ground lease

Industrial Tenant – Houston, TX

$13,378,000

  • Debt financing for a seven building industrial site
  • 20.0-year term / 11.7-year average life
  • 1.07x debt service coverage increasing to 1.58x over the life of the note
  • Structured as a forward, allowing interest rate to be locked 11 months prior to funding
  • Structured as a credit tenant loan

U.S. Department of Veterans Affairs – Lafayette, IN

$9,392,744

  • Debt financing of a to-be-built community-based outpatient clinic
  • A1 / A2 structure to accommodate the funding of tenant improvements
  • 1.05x debt service coverage
  • 77.3% loan-to-value ratio
  • Structured as a credit tenant loan

Bank of America Corporation – Houston, TX

$7,650,000

  • Debt financing of a one-story bank branch
  • 10.3-year term / 7.7-year average life
  • An insured balloon provided additional amortization
  • Loan-to-value less than 50%
  • 1.79x debt service coverage
  • Structured as a credit tenant loan