- Rate: L+7.5% w/7.85% Floor
- Term: 3 Years + Two (1) Year Exts
- Amort: Interest Only
- LTC: 73%
- Non-Recourse
Transaction Description: GSP structured and arranged the 73% Loan to Cost non-recourse bridge loan for the renovation of a boutique retail property and its adjoining marina. The project includes a 47-boat slip marina and a 372-space parking structure in addition to 91 on-grade parking spaces. The 123,000 square foot mixed use water front property consists of first and second story office and retail spaces in 14 separate structures with connected marina including 47 boat slips. The Sponsor plans to renovate the buildings and re-tenant the property to create an exciting retail environment that will comprise a mix of retail, restaurant, entertainment and other uses that will reach both the local customer demographic as well as draw regionally, utilizing the waterfront location. Of the 17 legal parcels, 13 parcels are owned in fee and 4 parcels located along the marina front are held as lease-hold interests. The 73% of cost non-recourse loan is priced at LIBOR+7.50% but offers a 50 basis point spread reduction as new leasing hurtles are met. The Borrower has 36 months until the initial maturity date with options to extend the loan for an additional 12 months.
Advisors
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Steve Bram
Managing Director & Principal / GSP Co-Founder
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David R. Pascale, Jr.
Senior Vice President
Related Financings
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$5,600,000 Bridge Loan for a 45% Occupied Two-Story Food Court
August 22, 2013
8 – 21 – 13 Transaction Description: George Smith Partners successfully placed the $5,600,000 bridge loan for a two-story retail building that is essentially a Koreatown food court. The committed loan represented 84% of the “As Is” value. Capital has been allocated for the renovation of a ground floor restaurant and refurbishment of the outdated second floor food court that is currently vacant. With a three year term, the interest only bridge loan is priced at 4.50%. Challenge: The Borrower needed to maximize loan proceeds for this distressed asset. There is significant street level competition in the area with more modern facilities. Parking is very limited, not subsidized and expensive for fast food clientele. Solution: GSP identified the correct capital provider who realizes the tremendous opportunity to transition the food court into a modern, hip and aesthetically pleasing dining environment. GSP worked with the lender to structure reserves for releasing the funds at various project stages. Our due diligence confirmed a very high foot-traffic count as customers will be predominantly pedestrian or utilize the convenient mass transit in the area. Some people do walk in LA. Rate: Prime+1.25% Term: 3 Years Amort: Interest Only LTV: 84% Prepayment: 9 Month lock then Open Recourse Lender Fee: 0.50% Advisors: Gilda Rivera, Salar Royaei
