Rate: 4.30% Fixed
Term: 10 Years
Amortization: 30 Years
LTV: 65%
Prepayment Penalty: 5-4-3-2-1 par
Lender Fee: Par
Non-Recourse
Transaction Description: George Smith Partners placed the senior non-recourse debt for the refinance of a 33,000 square foot, Pacific Palisades mixed use office & retail property. Sized to 65% of value, the loan is fixed for 5 years at 4.30%, and will float for the remaining 5 years at 310 basis points over the six-month LIBOR, amortized over 30 years. A step-down prepayment penalty is structured from 5% and is open after the 5th year. There was no lender origination fee. Our Borrower acquired the asset less than a year prior to this refinance although Sponsor experience and the T-12 cash flow justified the return of equity.
Related Financings
-
$3,900,000 Cash-Out Permanent Financing with Full Term Interest-Only After Exchange; Los Angeles, CA
July 2, 2019
Transaction Description:
George Smith Partners financed the purchase of a mixed-use retail/office building in Los Angeles, California, last year, using a 1031 exchange. GSP used our vast experience with tax differed exchanges to arrange a cash-out financing with a seven-year fixed rate and is full term interest-only. The cash- out was used to purchase a new property and the Sponsor was able to reinvest their entire exchange in the purchase to differ any taxable gain. The new refinance allowed the Sponsor to pull cash out from the property tax free and use that cash to grow his real estate portfolio. While the cap rate at purchase was very low, the Property’s value will continue to increase due to its location in a great Los Angeles neighborhood. In a traditional loan, the Borrower would be limited on the loan size and cash flow but structuring the full term interest-only loan allowed the Sponsor to achieve positive cashflow and acquire the new asset without issue.
Rate: 4.9%
Term: Fixed for 7 Years
Amortization: Full Term Interest only
LTV: 70%
Prepayment: 4,3,2,1
Guaranty: Non-Recourse
Lender Fee: None -
$7,800,000 Non-Recourse Acquisition and Pre-Development Financing on a West Los Angeles Office & Retail Building
October 29, 2015
Transaction Description: George Smith Partners arranged the $7,795,000 ($624/SF) non-recourse first mortgage from a national debt fund for the acquisition of a 12,500 square foot office and retail building located in West Los Angeles. The 12,500 square foot building was 58% occupied at close with all tenants on month-to-month leases and inadequate cash flow to cover debt service. Cash flow will further decrease post-closing as the Sponsor vacates existing tenants to convert the space to high-end multi-tenant retail. Sized to 80% loan-to-cost, the quick-close acquisition and pre-development loan priced at 9.75% fixed for the 12-month loan duration.
Rate: 9.75%
Term: 1 Year + two 6-Month Opts
Amort: Interest Only
LTC: 80%
DCR: sub-1.0
Prepayment: Six Month Yield Maintenance
Non-recourse
Lender Fee: 2% -
Cash-Out Refinance of a Mixed-Use Commercial Asset
June 5, 2015
Transaction Description: Shahin Yazdi placed the cash-out refinance of a 7 unit retail and office building 100% occupied by non-credit tenants. The Ventura, California asset leases will roll during the 7 year loan-term, although the capital provider became comfortable funding the return of equity due to the historical occupancy and operational history. Sized to 65% of value, the loan is fixed for 5 years at 4.25% prior to floating at WSJ Prime + 0.50% and amortizes over 25 years with a step-down pre-payment.
Rate: 4.25%
Term: 7 Years
Amort: 25 Years
LTV: 65%
Recourse
Lender Fee: 1.25 -
Full Leveraged Acquisition for a Southern California Mixed-Use Asset
April 30, 2014
4 – 30 – 2014 Transaction Description: Shahin Yazdi successfully placed a 70% Loan to Purchase for the acquisition of a retail and office building in Eagle Rock, California. The tenant mix consists of local businesses that all hold short-term leases and no credit enhancement. There is 100% roll exposure during the next three years. The rate is fixed at 4.20% for 5 Years before floating a 2.90% over the six-month LIBOR. There is three years of interest only before rolling into a 30 year amortization schedule for this non-recourse loan. Rate: 4.2% Fuxed for 5 Years; LIBOR+2.9% Term: 10 Years Amort: IO for 3 Years; 30 Year Amort Thereafter LTC: 70% Non-recourse Advisor: Shahin Yazdi -
$5,016,000 Mix-Use Refinance Mini-Perm
March 27, 2014
3 – 26 – 14 Transaction Description: George Smith Partners arranged the no-cash-out refinance of a 91,405 square foot mixed-use multi-tenant office, retail and self-storage property located in Van Nuys, California. Proceeds were used to retire the current debt that ballooned. The five-year term was sized to 72% LTV and is fixed at 5.0%; amortized over 25 years. There is no prepayment penalty. Challenge: The property had questionable proforma revenue resulting from short-term leases with weak tenants. Below market rents impacted the property valuation and debt coverage covenant. Office vacancy was high with no new leasing prospects at the time of funding. The existing loan had come due last year and extended once with no further extensions possible. The multiple mixed-use combination made it difficult for the appraiser to properly value the property. Solution: GSP identified a portfolio lender who understood the mixed-use configuration. Loan proceeds were maintained by reinforcing the desirability of the location and future value once cosmetic upgrades are completed and retail rents are rolled to market. A 1.20 debt coverage constraint was negotiated in our term sheet. The appraiser documented that the product mix was a benefit in that it created a unique and positive synergy compared to other properties in the area, while diversifying income risk from any singular market segment. Rate: 5.0% Term: 5 Years Amort: 25 Years LTV: 72% DCR: 1.20 Prepayment: None Advisors:Stephen Stein, Teddy Stutz -
$1,350,000 Cash-Out Refinance of a Mixed Use SoCal Asset
May 2, 2013
5 – 1 – 13 GSP placed the cash-out refinance of a restaurant anchored office building in Southern California. Additional loan proceeds were used to consolidate non-related, higher priced debt. The 10 year term is fixed for the first five years at 3.75%, amortized over 25 years. The rate will adjust to then market and will be fixed for the second five-year term subject to a rate cap of 6.75%. Third party due-diligence costs were limited to $8,500. This portfolio lender does not charge a pre-payment penalty. Rate: 3.75% Fixed for Five Years Term: 10 Years Amort: 25 Years Prepayment: None Recourse Lender Fee: 1/2 Point Brokers: David Stepanchak, Jason Gaffner
