Non-recourse financing allows DMCC Holdings to retire 10 individual mortgages
NEW YORK (Sept. 5, 2018) – Mission Capital Advisors announced that its Debt and Equity Finance team has arranged $16.75 million of permanent financing to refinance a portfolio of 10 office, medical, and retail properties located across northern Florida. The Mission Capital team of Matt Polci, Ari Hirt, Alex Draganiuk and Justin Hunt represented DMCC Holdings in securing the non-recourse loan from Deutsche Bank.
The 10 assets include retail, office, medical and office/medical properties, all of which are located in Greater Orlando, Greater Tampa and Greater Altamonte Springs. In aggregate, the portfolio is currently 97.7-percent leased. Each property has a strong location within its submarket, and benefits from convenient access to major roadways.
“After acquiring these assets over the past four years, DMCC has made significant property improvements, thereby generating strong leasing and renewal activity across the portfolio,” said Polci. “This non-recourse CMBS loan will replace ten individual mortgages, each of which was structured with recourse, while returning additional capital to the sponsor. With DMCC in the midst of a corporate expansion, the strong proceeds will enable them to continue adding to their portfolio of well-positioned commercial properties.”
Founded in 2005 by Narinder Seehra and Sunny Matharoo, DMCC Holdings is a privately held commercial real estate investment firm that focuses on investments that provide immediate in-place cash flow and significant capital appreciation.
“With DMCC entering its second decade of business, the refinance and restructuring through Mission Capital was the first part of our strategic growth plan,” said DMCC CEO Narinder Seehra. “This second phase, which will be completed in the 3rd quarter of 2018, will allow the company to become a Registered Managed Fund through its Offering Memorandum allowing it to attract investors from varying demographics and across multiple geographies. The Fund will allow investors to use registered vehicles such as 401K, DROP, RRSP, RESP and TFSA funds to invest whilst ensuring increased security through asset class diversification and reduced risk exposure.”
“Because there were 10 pieces of collateral involved in this portfolio, many capital providers were challenged with the necessary and complex legwork to underwrite the deal,” said Hirt. “After approaching a wide range of local and national lenders, we were able to structure very favorable terms with a lender who recognized the success of DMCC’s compelling business plan and ultimately provided more proceeds than the sponsor was anticipating.”
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York, Florida, Texas, California and Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $65 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.missioncap.com.