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4,950,000 Non-Recourse, 10-Year Permanent Loan with Flexible Prepay

Rate: 5.17% Fixed
Term: 10 years
Amortization: Interest Only for 4 Years then 30-Year Amortization Thereafter
LTV: 65%
Prepayment: Annual Stepdown from 10% to 1%
Guarantee: Non-Recourse

George Smith Partners secured $4,950,000 of permanent financing for two industrial buildings (one single tenant, one two tenants) located in Castaic, California. The 30-foot clear height buildings are located side-by-side and collectively total 57,825 square feet. One of the properties was constructed in 2011, while the other was built in 2016. The buildings are both 100% occupied but all of the tenants have lease terms that expire within the next four years. GSP was able to identify a capital source that would provide a non-recourse, long-term fixed rate loan. The borrower wanted to maximize cash flow which was achieved by taking minimal ongoing reserves, securing a 30-year amortization, and negotiating four years of interest only. The 10-year loan was priced at 5.17% at 65% LTV and offers a stepdown prepayment structure.

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