News Column

Envoy Finances FedEx Package Facility near Vail, Colo. for $2MM+ Through New Construction Loan Program

July 17, 2014

Innovative program allows FedEx preferred developer to secure 95% LTC financing and maintain 100% ownership of properties throughout the development process

CHICAGO--(BUSINESS WIRE)-- Envoy Net Lease Partners, LLC, a real estate finance company specializing in single-tenant, net-leased properties, today announced the closing of a $2 million-plus loan in central Colorado for a FedEx ground package facility under a new construction loan program serving the capital needs of net lease preferred developers.

The transaction, Envoy’s first in the industrial build-to-suit market, allowed a FedEx preferred developer to achieve 95 percent loan-to-cost construction financing for a pre-leased, single tenant distribution facility located across from Eagle County Regional Airport, a public airport also known as Eagle Vail Airport.

Envoy worked in tandem with its senior bank partner to provide the subordinated financing as a part of a wrap construction loan for this package distribution facility that will serve the communities around the ski resorts of Vail and Beaver Creek.

“Few FedEx distribution facilities have a higher profile to high-net-worth real estate buyers than this facility,” says Ralph N. Cram, Chief Operating Officer of Envoy. “Due to its prominent location directly across from the Eagle Vail Airport, everyone who flies into Colorado’s ski country — either by public or private plane — has to pass by this facility not just upon their arrival, but also on their return.”

Cram continued, “Envoy is pleased to have the opportunity to help FedEx Corp. and its preferred developer finance their ongoing expansion plans to meet their customers’ needs for faster delivery times.”

More control, more profit and less red tape

The package distribution facility transaction was the second to be completed under a new high-leverage construction loan program designed to provide developers with the additional capital they need to increase the size of their pipeline and meet their tenant’s construction schedules.

“Envoy's program helps developers secure up to 95 percent loan-to-cost financing for their pipeline of net lease development properties without the hassles associated with JV agreements or mezzanine loan documentation,” Cram says. “And they no longer have to give up control as is typical with pre-sale contracts. It’s everything the preferred developer has been asking for.”

Unlike many financing programs available to developers, including those offered by REITS, Envoy doesn’t require the developer to sell the property immediately following construction. Instead, the developer retains control of the property simply by paying off the construction loan and paying an exit fee. For many developers, the Envoy program can represent the lowest-cost option for capital when compared to third-party equity and traditional bank construction debt.

For more details on Envoy’s high-leverage construction loan program, including a printable flyer and a loan requirements checklist, visit envoynnn.com/construction-loans.

Envoy Net Lease Partners

Based in greater Chicago, Envoy Net Lease Partners, LLC, is a leading provider of build-to- suit financing to developers of single-tenant, net leased properties. The company provides needed capital in the form of high-leverage construction loans, mezzanine debt and equity financing for deals that are often too small or too complex to attract the interest of most institutional investors and lenders.

Envoy is backed by a $1 billion-plus New York money management firm and a family office with more than 50 years of retail industry experience. Envoy seeks qualified projects anywhere in the U.S. For more information and full investment criteria, visitenvoynnn.com.





Company inquiries:

Envoy Net Lease Partners

Ralph N. Cram, (847) 239-7250

Media inquiries:

ideafarm

Beth Hoover

bhoover(at)envoynnn.com

Source: Envoy Net Lease Partners


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Source: Business Wire


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