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NetCMG Completes $35 Million CTL Financing

In partnership with GEM Equity Markets, NetCMG structured the debt placement for Children’s National Facility

Herndon, VA – February 15, 2018 – NetCMG, Calkain’s Net Capital Markets Group recently teamed up with GEM Equity Markets to structure $35 Million in debt placement for Petrie Richardson Ventures (PRV) Children’s National Facility, a new 60,000 SF facility being developed in Glenarden, MD.  NetCMG assessed several fixed income instruments, and with interest rates rising and the developer financial goals, CTL made the most sense and profit.  PRV was able to pull out 140% of the construction costs up front while simultaneously locking a 3.875% interest rate at the time of the application.
“Jon and his team placed debt for PRV’s acquisition and development of a 60,000 SF medical office building in Maryland. They developed several creative options that allowed for a competitive process that ultimately landed us a highly attractive debt package through CTL financing. Throughout the process, the team communicated well, engaged seamlessly with us and worked diligently up through ultimate funding on the day of closing,” stated Terry Richardson, President of Petrie Richardson Ventures.
PRV pulled out a $8,350,000 loan through a lender that was able to find a fixed income buyer.  The fixed 20-year term coincides with the lease and is non-recourse.  As a result, in a rising interest rate environment, PRV will not need to reset the loan upon completion of the construction.
Jon Hipp, president and CEO of Calkain who led the NetCMG efforts added, “PRV is now set up to take advantage of a highly leveraged, zero cashflow loan. They can seek out a buyer that needs a large amount of debt with very little equity, mostly done for tax purposes. And we hope to help them do it.”  Although a limited market, a zero cashflow deal will allow PRV to monetize even more cash out of the deal.
For more information on NetCMG, visit NetCMG.com, or call Jonathan Hipp at (703) 787-4725.
About NetCMG:
NetCMG is a full-service investment banking and capital markets group. Backed by the long-term success and reputation of Calkain Companies, NetCMG brings you an in-depth understanding of capital markets coupled with an extensive network of funding sources.  The division’s service line encompasses sale-leaseback financing, CTL and structured debt, recapitalization and restructuring, joint venture equity and investment sale advisory.  NetCMG’s vast system of financial resources, combined with decades of practice, provides you with the best and most productive solution to support your specific commercial real estate investment goals and objectives.  Additional information about the firm and current offerings may be found at www.netcmg.com.

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