Deal of the Week #18 – $11.5M $7.2M $10.2M Term Loans
MARKET STABILITY & TERM LOANS
The current state of the commercial real estate (CRE) industry is characterized by high interest rates and soaring construction costs, leading to a notable decline in pre-sales compared to any recent year norms. In this challenging environment, Cameron Stephens is expanding our term loans allocation with competitive pricing to support our clients with their income producing assets. These term loans offer clients the ability to take advantage of the stabilized cashflow to secure long term fixed rates between 5.00% and 6.00%. CSMC also offers mezzanine financing in addition to our institutional fixed rate “A” piece solution, providing an overall loan coverage of just 1.0x.
DEAL A: FLEX INDUSTRIAL PROPERTY REFINANCING IN BRAMPTON
In July, Cameron Stephens Mortgage Capital (CSMC) committed to providing a 4-year $11,500,000 1st mortgage term loan secured against a leased property located at 266 Rutherford Rd S, Brampton, ON. This loan refinances existing debt on the 4.37-acre property designated for flex industrial use. The site includes two buildings occupying 44% of the area, with the rest allocated for parking. CSMC provided a very competitive rate and refinanced a higher priced existing lender.
DEAL B: QUICK TURNAROUND REFINANCE FOR A COMMERCIAL/RETAIL PROPERTY IN MARKHAM
In June, CSMC committed to a $7,200,000, 36-month first mortgage term loan for a commercial/retail building in Markham, Ontario. The loan is secured by a 12,670 SF single-tenant retail property on 0.61-acre site, operating as a successful Audi dealership on Yonge Street. The deal, both committed and funded within one month, showcases CSMC’s capability for rapid turnaround.
DEAL C: INDUSTRIAL SITE REFINANCE WITH CONTAMINATION MANAGEMENT IN MIND
In March, CSMC funded a $10,160,000 term loan for an 11.3-acre industrial site, featuring a 116,200 SF single-tenant warehouse. The loan, priced at 250 basis points over the bond yield on a two-year term, reduced the borrower’s cost of capital on a fixed-rate basis without a long-term lock-in, enabling potential advantage from lower interest rates at the term’s end.
WHY THIS DEAL MATTERS
✅ Cost Management: Term loans help borrowers manage and predict costs by locking in interest rates, offering stability in a volatile economic environment.
✅ Flexible Financing: These loans provide tailored financing solutions that match the cash flow needs and investment timelines of borrowers, enhancing financial planning, thereby reducing legal costs and enhancing execution certainty.
✅ Asset Optimization: Term loans enable borrowers to leverage existing assets and create liquidity at preferred rates, and reduce their interest burden in other assets.
To find out more reach out to us at financing@cameronstephens.com
Ontario Brokerage License # 10769
- Riccky Dasgupta, FRM, CFA, Agent Level 2
- Ian Wilson, Agent Level 2
- Andrei Gropper, MBA, Agent Level 1
- Conor Soye, Agent Level 2.
