Columbia Retail Cash-Out Refinance

Columbia, SC

Deal Overview

Inner Circle Capital successfully closed a cash-out refinance for a multi-tenant retail property located in Columbia, South Carolina, providing the borrower with capital for their next property acquisition.

The loan was structured to assist a borrower who had acquired the retail property in mid-2023. Since the acquisition, the borrower completed approximately $600,000 in capital expenditures (capex) to improve the property, including renovations and tenant improvements. In addition, the borrower successfully restructured the leases of the current tenants to optimize cash flow and leasing terms.

The property’s acquisition cost, including the $600,000 in capex, resulted in an all-in cost basis of approximately $1 million. The new loan allowed the sponsors to cash out their investment completely. This was a perfectly executed BRRRR on a retail property.

The transaction was particularly challenging given the recency of stabilization (no T-12 and recently signed leases) and the sponsors being out of state. The sponsors also wanted no prepayment penalty, which would allow them to refinance again if rates fall in the near future.

Capital Advisors: Andrew Bouton and Jaideep Chadha

Transaction Details

Loan Amount

$1,050,000

Term

5 Years

Prepayment

None

Rate

6.5%

Recourse

Full Recourse