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