Business
GENERATION INCOME PROPERTIES REFINANCES SEVEN PROPERTIES FOR $13.5 MILLION
Debt Maturities Effectively Extended --News Direct--Generation Income Properties, Inc. (NASDAQ: GIPR) (“GIPR” or the “Company”) announced that it refinanced
About this update from Generation Income Properties Inc.
[{"type":"text","content":"Debt Maturities Effectively Extended\n--News Direct--Generation Income Properties, Inc. (NASDAQ: GIPR) (“GIPR” or the “Company”) announced that it refinanced seven properties for approximately $13.5 million in debt. This transaction reduces the seven properties combined loan-to-value ratio to approximately fifty four percent (54%) based on recent appraisals. The refinancing was structured in the form of two term loans: one in the amount of $2.1 million for the Company’s property in Rockville IL, and one in the amount of $11.4 million for the other six properties. The refinancing resulted in loan obligations of $13.5 million in total secured by properties leased to the following companies or their affiliates: GSA (S&P: AA+) in Manteo, NCIrby Construction (NYSE; PWR, S&P: BBB) in Plant City FLLa-Z-Boy (NYSE: LZB) in Rockville, ILBest Buy (NYSE: BBY, S&P: BBB-) in Grand Junction, COFresenius Medical Care (NYSE: FMS, S&P: BBB) in Chicago, ILStarbucks (NASDAQ: SBUX, S&P: BBB+) in Tampa FLKohl’s (NYSE: KSS, S&P: BBB-) in Tucson, AZ GIPR obtained the 10-year term loans from Valley Bank (NASDAQ: VLY) with an annual fixed interest rate of 3.85% for 5 years and amortized over a 30-year term with the first 12 months allowing interest-only payments. David Sobelman, President and Chief Executive Officer commented, “With our previously stated goal to reduce our overall debt, we are pleased with the refinance of seven of our properties to transition from short-term debt to long-term, fixed-rate debt through our expanded banking relationship with VLY, an approximately $6.4 billion market cap institution. Our previously announced $25 million commitment from American Momentum Bank (AMB) now has an outstanding balance of zero, which frees us to contemplate using their commitment for future acquisitions and improves our overall capital stack. Also, as we seek to protect ourselves against the rising interest rate environment, we are able to fulfill one of GIPR’s goals of reducing our overall debt exposure. We are very grateful to VLY for their confidence in our company and look forward to continuing to work with them in the future.” About Generation Income Properties Generation Income Properties, Inc., located in Tampa, Florida, is an internally managed real estate corporation formed to acquire and own, directly and jointly, real estate investments ...