SANTA ANA, Calif.--()--After several months of negotiations with lender Fifth Third Bank, Santa Ana-based Daymark Realty Advisors has secured a two-year loan extension for Tenant In Common (“TIC”) owners of the 132,000-square-foot Jacksonville Medical Plaza in Jacksonville, Florida. The terms include an additional 12-month extension option thereafter, extending the maturity through July 28, 2014.
“This extension provides the time necessary to stabilize the asset and allows ownership to await a potential market recovery.”
According to Todd Mikles, Daymark’s CEO, today’s lending climate makes it extremely challenging to obtain financing for properties owned by TIC investors. Daymark’s expertise in such negotiations has reaped major benefits for the property’s investors. “The alternative of an immediate sale would not result in proceeds for the owners,” says Mikles. “This extension provides the time necessary to stabilize the asset and allows ownership to await a potential market recovery.”
Nearly all lenders require TICs to roll-up as part of any refinance or loan modification. Accordingly, Daymark has established and will manage Jacksonville Medical Plaza Manager, LLC, a newly formed Delaware limited liability company. All of the TIC entities that owned the property have been merged and each owner has been issued membership units in the new LLC. Investors own the same proportionate share of the newly formed ownership entity as they did within the Tenant-in-Common structure.
Mikles adds that the loan extension term of up to 36 months is longer than what is typically available from a majority of lenders in today’s market, and that no additional capital from the ownership group will be required to facilitate the long-term loan extension. In addition, the structure provides for additional leasing reserves to be accrued that should prevent the need for any future capital calls to fund leasing.
About Daymark Realty Advisors, Inc.
Daymark Realty Advisors, Inc. is one of the country’s leading providers of strategic asset management and structured finance services to private and institutional owners of commercial real estate. Daymark provides a fully integrated platform of services that focus on maximizing property value and performance, and offers proven expertise in the repositioning of distressed assets, debt restructuring and property recapitalizations. From six offices throughout the country, Daymark manages a nationwide portfolio of commercial real estate properties totaling approximately 33.3 million square feet, including more than 8,700 multifamily units, valued at $4.9 billion based on purchase price.