Cronheim Mortgage secured cash-out refinancing for a 709,000-sf warehouse and distribution facility fully occupied by Best Buy. The 5-year loan was locked at a rate of 4.32%.
The property is located in Staunton, VA just off I-81 and serves as one of Best Buy's seven national distribution and fulfillment centers. Best Buy has occupied the property for over 20 years and had just renewed its lease for five more years.
While Best Buy had just renewed, this is a huge single-tenant industrial building in a tertiary market tenanted by a company which has been under a lot of pressure over the past couple years. In order to get this cash out financing done, Cronheim needed to substantiate 'dark' value to convince the lender that their hangout risk was acceptable in order to achieve an optimal outcome.