Meridian Capital Group, America’s most active debt broker, negotiated a first mortgage of $2.8 million and a second mortgage of $3 million for the acquisition and recapitalization of a triple-net leased CVS in Chicago, IL.
The seven-year loan, provided by a balance sheet lender, features a competitive fixed rate of 3.75%. This transaction was negotiated by Meridian Associate, Bryan Kallenberg, who is based in the company’s New York City headquarters.
The property, located at 745 West 103rd Street, in the Washington Heights neighborhood of Chicago, is a single-story pharmacy with drive-through, solely occupied by CVS Pharmacy. The sponsor bought the property in a 1031 exchange after the sale of a multifamily property in Brooklyn, NY. The CVS Pharmacy was built in 2012 and has a 25-year lease in place. The clients purchased the property for $8.7 million at a 6.00% capitalization rate.
“Our clients purchased the CVS Pharmacy for $8.7 million using the proceeds from a 1031 exchange,” explained Mr. Kallenberg. “Using Meridian’s strong, long-term lender relationships, we were able to negotiate a first mortgage of $2.8 million to satisfy their 1031 exchange and immediately after provide a second mortgage of $3 million to recapitalize the majority of their equity,” he added.
Founded in 1991, Meridian Capital Group, LLC is one of the nation's largest commercial real estate finance and advisory firms. Meridian is headquartered in New York with offices in New Jersey, Maryland, Illinois, Florida and California. Working with a broad array of capital providers, Meridian arranges financing for transactions ranging from $1 million to more than $500 million for multifamily, co-op, office, retail, hotel, mixed-use, industrial, healthcare, student housing, self-storage and construction properties. www.meridiancapital.com