A Holland & Knight team in Miami closed a $20.16 million loan that will pay for the development of new Burger King locations throughout Florida.
Exactly how many new restaurants will open and where remains unclear. The Holland & Knight team declined to disclose this.
This much is known: There will be at least four new Burger Kings, the attorneys confirmed.
Holland & Knight partners Elena Otero and Andres Fernandez and associate Tomas Castellanos closed the deal on behalf of the borrower, Seven Real Estate Holdings LLC, on March 1.
Seven Real Estate is affiliated with GoldCo LLC, according to state records. GoldCo owns and runs Burger King restaurants in Florida, according to Bloomberg.
Miami-based City National Bank is the lender. Saul Ewing Arnstein & Lehr partners Louis Archambault and Phillip Hudson III in Miami represented the bank.
The loan was a development facility line allowing for a staggered release of funds when construction is ready to start, Otero said.
“Each time they are ready to open a restaurant that they are going to fund under the development facility, they go to the lender, and then that property will become a mini-construction loan,” Otero said. “You establish the facility, and then they are comprised of mini-construction loans” for each project.
The Holland & Knight team closed four mini loans, each for a new Burger King, simultaneously as it closed the entire $20 million development facility line, Otero said.
A development facility line is a different type of transaction than a traditional construction loan.
“Only a select set of banks would have the appetite for this type of deal because the bank is going to need to have the sophistication to be able to handle this type of transaction,” Fernandez said.
“It’s not just a straight construction loan,” Otero added.