CTL Closing Announcement: Costco Wholesale Corporation

Friday, January 5, 2018


William Blair acted as the sole placement agent of debt financing for the owner of a 14.4-acre parcel of land in Monterey Park, California, on which an approximately 155,000-square-foot Costco Wholesale Corporation store and gas facility will be built.

The financing details of this private placement include:

  • Costco Wholesale Corporation as ground lessee with a rating of "A+" by Standard & Poor's and "A1" by Moody's
  • 25.8-year term / 18.9-year average life
  • 1.01x debt service coverage
    • 84.1% loan-to-value
    • A rated balloon provided additional amortization
    • Construction-to-permanent financing  with uncovered construction risk

William Blair's Commercial Real Estate Finance (CREF) team is dedicated to sourcing debt solutions, sale-leasebacks, and private equity for commercial real estate developers, investment firms, and owners. For the past 21 years, William Blair has executed over 535 transactions for the financing of commercial real estate in the retail, healthcare, government, higher education, office, and manufacturing sectors.

William Blair is a premier global boutique with expertise in investment banking, investment management, and private wealth management. We provide advisory services, strategies, and solutions to meet our clients' evolving needs. As an independent and employee-owned firm, together with our strategic partners, we operate in more than 20 offices worldwide.* For more information, please visit williamblair.com.

*Includes strategic partnerships with Allier Capital, BDA Partners, and Poalim Capital Markets.

William Blair was not engaged by and did not represent the ground lessee listed in the transaction above.  The ground lessee has not endorsed William Blair or the products and services the firm provides.

This is not in any sense a solicitation or offer of the purchase or sale of securities.  Individual securities listed in this announcement are for informational purposes only.  This information does not constitute investment advice or recommendations with respect to the securities.

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