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Case
A Tale of Two Properties: Debt Strategies for Financing Commercial Real Estate
Author(s)
Stanley Cirano owns two retail shopping centers in suburban Chicago. With interest rates near all-time lows in late 2015, Cirano believed it was an opportune time to consider the debt financing of his properties. Although the properties were similar in many respects, the lenders willing to lend against each property were offering noticeably different terms. Cirano had to consider not only the interest rate and size of each potential loan, but also the various fees, potential prepayment penalties, and variations in recourse to make the best decision for each property.
Date Published:
12/04/2018
Discipline:
Finance
Key Concepts:
cash flow analysis, financial strategy, real estate, financial analysis, strategic planning
Citations:
Furfine, Craig. A Tale of Two Properties: Debt Strategies for Financing Commercial Real Estate. 5-318-503 (KE1106).