Terrace Capital, Inc. - $61 MM in Non-Recourse Senior Debt Financing - Industrial Portfolio - Midwest, US
New York, New York – December 5, 2012 – (http://www.terracecapital.com) Terrace Capital announced today that it has secured $61MM in non-recourse financing for a portfolio of single tenant, industrial properties located in nine states, scattered throughout the United States.
Published on: Mar 4, 2016
Transcripts - Terrace Capital, Inc. - $61 MM in Non-Recourse Senior Debt Financing - Industrial Portfolio - Midwest, US
Terrace | Capital, Inc
Rea l Es ta te In ves tm en t Ba n k in g
FOR IMMEDIATE RELEASE
For Transaction Inquiries Contact:
Terrace Capital, Inc.
65 Broadway- 7th Floor
New York, New York 10006
Direct Dial: (212) 671-1031
Terrace Capital, Inc. – $61MM in Non-Recourse Senior Debt Financing- Industrial
Portfolio – Midwest, US.
New York, New York – December 5, 2012 – (www.terracecapital.com) Terrace Capital
announced today that it has secured $61MM in non-recourse financing for a portfolio of single
tenant, industrial properties located in nine states, scattered throughout the United States.
Barnett Capital LTD, located in Chicago, IL is a “Family Office”, founded by Joel Barnett,
which provides high yield debt for owners of commercial & residential real estate and companies
in need of financing for inventory and equipment. Mr. Barnett, for the past 30 years, has
captained the firm that bears his name with the sole purpose of sourcing and managing
investment opportunities for his family.
The proceeds of this $61MM, 75% LTV, CMBS loan were used by the borrower for the
refinance of full recourse lines of credit that had been used to acquire, renovate and re-tenant 20
industrial properties, totaling 2MM square feet. The senior debt had a 10-year fixed term and a
25 year amortization schedule and required no personal guarantees. The non-recourse,
permanent financing will allow Barnett Capital to expand its core lending business and continue
providing capital to organizations and individuals, who are unable to obtain traditional bank
According to a senior underwriter at Terrace Capital, “Barnett had specific requirements which
had to be met for certain business needs such as maximum leverage, the ability for partial
releases of collateral and the flexibility to use letters of credit for reserves, instead of cash”.
Despite the challenges of working with single tenant buildings, multiple short term leases and
several tertiary locations, Terrace was able to structure a max leverage CMBS deal which
allowed for partial releases with acceleration rates as low at 105%, by cross collateralizing the
assets and minimal use of letters of credit to mitigate lease rollover risk.
About Terrace Capital
Terrace Capital focuses on non-recourse loans and preferred equity of $5MM and greater on
income-producing retail, office, industrial, multifamily, self-storage and hotel properties
throughout the continental United States.
The Firm is a leader in providing permanent mortgages and equity for wide range of real estate
For more information about Terrace Capital and the services it provides, go to