Who is the right lender for this NNN property?

[Will Gaston]

All:

I'm about to put an LOI on an NNN property (Jiffy Lube) in Houston and am looking for the right lender. Here are the specs:

Purchase Price: ~825k

Down Payment: 300k

Loan Amount: ~525k

LTV: 64%

Years Remaining on Lease: 6.7

Corporate Guarantee: Yes

Property Built: 1987

NOI: $46,571

20 Year AM DSC: ~1.10

25 Year AM DSC: ~1.25

I currently have loans with 9 different banks and so I'm fairly familiar with the underwriting process. I believe that most underwriters will want/require a 25 year AM because the DSC is pretty tight.

I have plenty of lenders that would do this loan if the property was in/near South Carolina and only required a 20 year AM. Their total fees (origination, appraisal, Phase 1) I believe would be in the $5,000-$7,000 range. I have a national NNN lender that will give me a 25 (or 30 year) loan on this property but his minimum origination fee is 1% or $10,000, whichever is less. I believe his appraisal fees and Phase 1 requirements may be more expensive as well. Probably 15k-18k total in fees is my best guess.

So I'm stuck between a loan too small for a big lender and a loan in the wrong market for another.

I think the right bank may be a local-ish lender in the Texas market. I realize that I'm an out-of-state borrower but a 35% down payment on a NNN is pretty low on the risk scale I would imagine.

Can anybody provide some guidance or recommendations on this?