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Authors: Craig Furfine
Published by: Kellogg School of Management
Originally published in: 2019
Version: 15 May 2019
Revision date: 07-Oct-2019
Length: 19 pages
Data source: Published sources

Abstract

Stanley Cirano owns two retail shopping centers in suburban Chicago. With interest rates near all-time lows in late 2015, Cirano believed it was an opportune time to consider the debt financing of his properties. Although the properties were similar in many respects, the lenders willing to lend against each property were offering noticeably different terms. Cirano had to consider not only the interest rate and size of each potential loan but also the differing fees, potential prepayment penalties, and variations in recourse to make the best decision for each property.

Geographical setting

Region:
Americas
Country:
United States
Location:
Chicago

About

Abstract

Stanley Cirano owns two retail shopping centers in suburban Chicago. With interest rates near all-time lows in late 2015, Cirano believed it was an opportune time to consider the debt financing of his properties. Although the properties were similar in many respects, the lenders willing to lend against each property were offering noticeably different terms. Cirano had to consider not only the interest rate and size of each potential loan but also the differing fees, potential prepayment penalties, and variations in recourse to make the best decision for each property.

Settings

Geographical setting

Region:
Americas
Country:
United States
Location:
Chicago

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