Golf / Recreational Facility - Minneapolis, MN

Closed: March 2018

UPB: $25,100,000

 

Loan Details

  • Loan needed for the construction of a 65,976/102-bay golf/recreational facility.
  • Completion guaranty from borrower and Topgolf. 

Collateral Summary

  • Borrower purchasing property from Topgolf to finish the construction of their facility.
  • Topgolf acquired the site in October 2017 and commenced construction.
  • Topgolf signed 20-year absolute net lease at closing and will begin paying annual rent of $2.759MM when property is open for business (anticipated date of October 2018). Pays rent equivalent to loan interest amount during construction.
  • Being constructed by ARCO/Murray National Construction Company – has built all of the existing Topgolf locations and is under a master build contract.
  • Topgolf’s rent reflects a 11% debt yield on loan. Anticipated exit cap rates of 7-8% for similar product type.
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