Harbor Freight

Transaction Details

The Subject Property is a stand-alone Harbor Freight located in Longmont, Colorado. Previously an owner-occupied Walgreens, the building was expanded prior to Harbor Freight taking occupancy. At the time of our client’s purchase, the building was 100% occupied by Harbor Freight Tools, a hardware retailer with over 740 stores in 47 states across the country. The tenant had signed a new 15-year lease in late 2016.

The Proposition

Essex’s client was under contract to purchase the property in order to complete a 1031 exchange. Our client was interested in max proceeds to finance the acquisition and maximum prepayment flexibility.

Our Solution

Essex Financial Group arranged $3,255,000, a 70% loan to purchase price with a Credit Union relationship. The loan offered the borrower a competitive rate locked in for 7 years followed by a 3 year floating rate period adjusted annually. The loan offers no prepayment penalty for the life of the loan. Essex closed the loan in less than 45 days and met the client’s contract closing date.