Janesville, WI

Janesville, WI Highlights

This newest opportunity from Yieldi is a 100% occupied shopping center in Janesville, WI anchored by Office Max with +25 years of commitment to the site. The property features a diverse class of tenants spanning across various industries such as fitness, consumer staples, and healthcare, with 74% of income stemming from national tenants. In addition, the Property has experienced favorable leasing traction with four new tenant additions with extensive lease terms and multiple renewal options inclusive of rate increases. The Property benefits from excellent traffic exposure with ±35,000 vehicles per day through the adjacent roads while being anchored by a long-term national credit tenant and shadow anchored by a national grocery chain with a recent 5-year term extension (Schnucks).

About the Neighborhood

Janesville is part of the Madison MSA, the capital city of Wisconsin. It is the second largest city in Wisconsin by population, after Milwaukee, and the 80th largest in the U.S. The city is home to the University of Wisconsin-Madison, the Overture Center for the Arts, and the Henry Vilas Zoo. The presence of the University of Wisconsin-Madison (the largest employer in the state) as well as other educational institutions has a significant impact on the economy, culture, and demographics of Madison. As of 2021, Madison is the fastest-growing city in Wisconsin. Madison’s economy features a large and growing technology sector, as well as many biotechnology and health systems startups. Madison is a popular visitor destination with tourism generating over $1 billion for Dane County’s economy in 2018. A booming population has contributed to landlord favorable rent increases with a 23% increase in median rent between 2014 and 2019.

Seniority

The first-priority mortgage lien position is the most senior and highest priority within the capital structure. In the event that a borrower defaults, the lien priority determines the order in which lenders are repaid. Senior lenders are always repaid first. All subordinated positions, including the amount held by the Originator and its investor syndicate, act as a buffer in the event of a deterioration in the Properties’ value.

Personal Guarantee

The Loans are personally guaranteed by the borrower, spouse, and all principals in the LLC. Additionally, the Sponsor and/or Guarantor are obligated to contribute monthly payments to maintain a tax and insurance reserve. Failure to adhere to reserve contribution requirements would lead to the triggering of a debt service and operating expense/shortfall guarantee.

Upfront Reserve

The Loan is structured with interest reserve for further protection.  12 months of debt service payments will be collected at closing.