17-Restaurant Deal Gets $30M Bond Backing

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DALLAS-A 17-property retail portfolio in the Southwest and West is collateralizing a $30-million refi, funded by a private bond sale to 10 US investors. The deal’s dynamics include an 87% loan-to-value ratio and a 1.05x debt-service coverage.

Jonathan Morris, president of locally based BMC Capital LP, tells GlobeSt.com that the high-leverage, low debt-service coverage would only have been possible with the bond offering. “It was looked at more as corporate debt than real estate,” he explains about the financing strategy. “That’s how we got the really high LTV and really low debt-coverage ratio. Instead of using institutions that finance real estate, we used the financing community that finances corporate debt.”