NAS Announces Successful Refinancing of a TIC Property
Successful Refinancing of a TIC Property Keeps Ownership Structure Intact
Virginia Beach, VA – National Asset Services (NAS), one of the Country’s leading commercial real estate companies, today announced the successful refinancing of a TIC Property, Lynnhaven Square, a community shopping center located about 12 miles southwest of the Virginia Beach Ocean Front, at the intersection of Lynnhaven Parkway and Princess Anne Blvd.
NAS secured a 10-year, $5 Million commercial mortgage-backed securities note from Deutsche Bank on behalf of the eight tenant-in-common (TIC) co-owners without any restructuring of ownership. The note enables the TIC Co-owners to pay off a maturing loan as well as maintain the property’s cash distributions to ownership.
Under NAS’ management, the 12-Unit, 22,933 square-foot retail center is 100% leased, which was a key factor in the Company’s ability to secure refinancing. Procurement of a loan for a tenant-in-common property, without the Lender’s requirement of a restructuring of co-owners into one entity, is a unique circumstance in today’s marketplace. Many capital sources are unwilling to refinance multi-owner, TIC properties that were routinely part of highly leveraged acquisitions in the early 2000’s. The group of tenant-in-common co-owners acquired Lynnhaven Square in 2005 for $4,615,000.
“Delivering a refinancing option that allowed our clients to keep the original TIC ownership structure intact, with all of its inherent tax advantages, is a huge win,” commented Shirlee J. Kingsley, CPM, Vice President, National Asset Services, who also oversees the asset management of the shopping center. “We’ll continue to focus our expertise on maximizing the Property’s return on investment for the co-ownership group.”
Built in 2001, Lynnhaven Square is a two-building, unanchored center that features a mix of national and local stores including; Athlete’s Foot, Cold Stone Creamery, Subway, Verizon Wireless and The UPS Store. Contiguous to the Property is a Wal-Mart, Supercenter, Home Depot and Walgreens.