Construction loan refinancing
Guaranteed Lending Specialists recently arranged a $2,750,000 USDA Business & Industry (B&I) Guaranteed Loan for the refinancing of a portfolio of newly constructed cell towers across New Mexico, Texas,Minnesota, and Oklahoma. This financing solution enabled the borrower—one of the largest privately held cell tower developers in the country—to refinance their construction line of credit, thereby unlocking capital for continued tower development under a large-scale build-to-suit agreement with a major cellular carrier. Guaranteed Lending Specialists added value by connecting the Borrower to a lender that has lots of experience in the cell tower industry. Cell towers are unique since they often experience lower initial yields than other asset classes because they begin operations with a single tenant. Over time, new tenants will be added to the tower, with nearly all incremental rental income flowing to the bottom line since all of the operating expenses are fixed. The USDA B&I loan’s long-term amortization offers developers the cash flow needed to reach optimal occupancy without short-term financial pressure. Guaranteed Lending Specialists has been assisting cell tower developers for nearly 30 years and has developed a deep network of lenders that understand the asset class as well as the USDA guaranteed loan programs.