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$25,328,000 Bridge Acquisition Financing for Vacant Denver Office to 65% of Cost

Rate: LIBOR + 475
Term: 3 Years + Two – 12 Month Exts
Amort: Interest Only
LTC: 65%
Non-recourse

Transaction Description: George Smith Partners arranged the acquisition financing for a brand new 78,000 square foot office building in the Platte River sub-market of Downtown Denver. The Sponsor had an executed lease for 65% of the building at closing, with an option to take the remainder of the space. Sized to 65% of total cost, the capitalization consists of a $25,700,000 purchase price and $10,300,000 TI/LCs including carry cost. Floating at LIBOR + 475, the non-recourse loan carries a 3 year term before options.

Challenge: Per the purchase contract, the newly constructed office building would be delivered as a warm shell, with an extensive TI build-out ($130/SF) still to be completed. With 14 months of no cash-flow and the TI build-out to be completed for a startup tenant, the financial market struggled to underwrite the business plan.

Solution: GSP documented the tenants’ impressive capitalization and national expansion plan. The Denver Office Market is prime for this tenants’ business model and the sub-market strength added to our underwriters’ comfort level.

Related Financings

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    Transaction Description:

    George Smith Partners arranged $9,000,000 in bridge financing to refinance a single-tenant office property in the Inland Empire. The Property has been nearly 100% leased to a county entity for 20 years, with lease renewals every 5-7 years. The Sponsor is leaving the unused space vacant in order to attract a single-tenant government lease buyer. GSP had arranged CMBS financing on the property in 2012 that came due in late 2022. Due to the timing in getting a new lease executed, the Sponsor asked for and received a short extension from the lender/servicer. GSP sourced a bridge lender that was poised to fund upon execution of the lease and estoppel. The loan paid off the existing loan and provided funds for tenant improvements mandated in the lease extension. It also gives the Sponsor maximum flexibility to sell or refinance over the next 2 years.

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    Amortization: Interest Only
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  • $22,070,000 Bridge Loan on 100% Vacant Office Property; West Los Angeles, CA

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    Transaction Description:

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    Transaction Description:

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    Transaction Description:

    George Smith Partners secured a senior bridge loan for a 21,303 square foot office building in Laguna Niguel, CA. The Subject Property was unencumbered; hence the entire loan was comprised of cash-out proceeds which the Borrower is utilizing for a separate project they are developing. The loan represents approximately 60% of the original purchase price and was structured with a 1-year initial term with interest only payments. The loan allows for open prepayment and carries two 6-month extension options.

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    Transaction Description:

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  • $25,500,000 Non-Recourse Bridge Financing for an Acquisition of an Office Building; Phoenix, AZ

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    Transaction Description:

    George Smith Partners arranged $25,500,000 in non-recourse bridge financing for the acquisition of a 230,000 square foot Class A office building located in the heart of Phoenix, Arizona’s Midtown District. Positioned on a heavily trafficked thoroughfare of a major professional corridor, the site benefits from its central location, proximity to Downtown Phoenix and abundance of local economic drivers. The Project, built in 1982, had been well-maintained but was running a below-market occupancy rate of 82% due to the recent expiration of a large tenant lease. This bridge facility allowed the Canadian-based Sponsor to purchase the asset and undergo a proposed renovation, bringing the design up to competitive market standards in order to successfully lease-up and stabilize the asset.

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