Search
 

GlobeSt.com EXCLUSIVE: $12M B-T-S Breaks Ground

PHOENIX-Royal Paper Converting Inc. secures a $9.4-million, fixed-rate construction and permanent loan for a 318,000-sf manufacturing and distribution facility. The project will be completed in September.

By Jennifer D. Duell | Updated on January 31, 2005

PHOENIX-Royal Paper Converting Inc. has started construction on its $12-million manufacturing and distribution facility.

Johnson Capital Partners of Arizona LLC assisted the company in securing a $9.4-million, fixed-rate construction and permanent loan for the project. The lender, Carmel, IN-based Mortgage Capital, provided a 5.45% construction loan that is interest only for the first year.

Once Royal Paper moves in, the loan automatically converts to a 15-year permanent mortgage at the same fixed rate and amortizes on an 18-year schedule, according to Lucas Donahue of Johnson Capital Partners. “The financing has allowed the borrower to secure construction and permanent financing from one source, with one closing, one set of third-party reports and one set of fees,” Donahue explains. The construction and permanent financing option also allowed Royal Paper, now operating at 711 N. 17th Ave., to lock in an interest rate for the life of the loan to eliminate an interest rate risk during construction.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.