Debt Terms: Confidential
Transaction Description:
George Smith Partners secured $35,000,000 in capital for the conversion of the Norton Building, located in the Fashion District of Downtown Los Angeles. The capital is going to be used to convert the existing mixed-use asset into creative office space with ground floor retail. The $35,000,000 was comprised of a $25,200,000 non-recourse credit facility, which was split into a $12,900,000 term loan fully funded at time of closing and a delayed draw term loan of up to $12,300,000 for tenant improvements and leasing commissions. Additionally, the capital stack was topped off with $9,800,000 in joint venture equity financing which was also arranged by GSP.
Challenge:
The project was one of the first of its kind in the sub-market and GSP needed to ensure capital providers were comfortable with the demand for creative office tenants within this sub-market of Downtown Los Angeles.
Solution:
George Smith Partners was able to demonstrate the market demand for creative office space via recent leasing trends within the sub-market. Additionally, GSP leveraged off of preliminary negotiations the Sponsor had with potential tenants in order to demonstrate the demand for creative office space at this location.
Related Financings
- No related financings.
