You have been asked to analyze a property for a refinance with a bank on behalf of a commercial property owner.
Use your creativity to put together a loan package from the potential borrower to XYZ Bank to analyze a prospective loan for the property in the form of a cover letter and accompanying analysis and exhibits. Property Summary The Southwest Freeway Retail Center is located in southwest Houston, Texas. The property was built in 2005 and is approximately 93% leased. The property is north of the Southwest Freeway (Highway 59) just west of Gessner. The property consists of a 20,000 square foot retail center. This is a hypothetical property, but I expect you to use your creativity to support you analysis with maps, photos, or any other exhibits to support your request and analysis. The hypothetical site is located between two major intersections just east of Beltway 8 and south of Loop 610 along the Southwest Freeway (Highway 59.) The site is also in close proximity to Memorial Hermann Southwest Hospital, which is one of the most sophisticated suburban medical faculties in Houston.
Additionally, the site is surrounded by various retail centers, restaurants, area malls, hotels, and residential areas. There are a total of 7 tenants at the property with one vacant space. All tenants at the property have a triple net lease.
Your Assignment The Excel template provided contains three tabs: a rent roll, a loan summary, and a Proforma for your use.
Please use the rent roll to create a Proforma and Loan Summary for the property (provided in the template for your convenience.) Your completed assignment should include the following components:
Question (1) A detailed cover letter addressed to the banker at XYZ Bank discussing the property, a summary of your analysis, and the property's strengths and weaknesses that the banker should consider. Your objective is to point out facts to the banker of why this loan would be a good investment for the bank, as well as any risks that exist. You may think outside of the box and use your creativity in terms of the sponsorship of the borrower (his or her management experience, net worth, etc.) or other components that we've learned about through the semester as it relates to the property or analysis.
Question (2) The accompanying Excel file with the Loan Summary and Proforma completed
Attachment:- Excel (2).xlsx