Rate: 5.1% Fixed
Term: 10-year Term
Amortization: 30 years
LTV: 70%
Guarantee: Non-Recourse
George Smith Partners arranged $8,800,000 for the refinance of two multi-tenant office buildings located in Baton Rouge, Louisiana. GSP identified a capital provider that would accommodate the existing credit challenges of the borrower. Initially the financing included a third property that added lease roll mitigation. When the third property was dropped, the loan was extended to a 30-year amortization and a reserve trigger was created to deal with potential roll-over risk from numerous month-to-month leases and leases with termination rights.
Related Financings
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$8,000,000 Bridge Financing for Vacant Creative Office; Culver City
December 9, 2020
Transaction Description:
George Smith Partners arranged $8,000,000 in non-recourse financing for the refinance of a vacant office building in Culver City which had just completed an extensive renovation into creative office. The Sponsor purchased the two-story building over 15 years ago as an owner-user. He invested significant capital to improve the building and create a modern creative office property that would appeal to creative office users in the technology and media industries attracted to Culver City. Prior to the pandemic, the Sponsor was negotiating with multiple tenants to occupy the building. These potential tenants paused on negotiations and the Sponsor had to quickly refinance his construction loan with a new bridge loan to allow him more time to lease-up.
GSP accomplished the Sponsor’s goal to refinance the existing loan with a facility that is pre-payable at any time. This facility allows the Sponsor to lease up the remaining vacant space and refinance with a long-term loan in the next 6-12 months and it also provides additional funds for tenant improvements. GSP was able to identify a local lending source that not only understood the market and demand for office space in Culver City but also understood the overall value of the Property.
Rate: 5.90% fixed
Term: 12 months
Amortization: Interest Only
Prepayment: Open
Guaranty: Non-Recourse -
$1,500,000 Non-Recourse Rate & Term Office Refinance; Southern California
September 16, 2020
Transaction Description:
George Smith Partners placed the non-recourse refinance of a Southern California single-tenant office and instruction center owned and operated by a 501c3 approved charity. This office is configured for classroom training, instruction and traditional administrative office use. Deemed an essential business, operations were never delayed as a result of the COVID-19 pandemic. Due to the ownership structure, there is no recourse or carve-out guarantees beyond the charity entity. The cash neutral loan financed all closing costs and reduced the Borrowers’ mortgage constant by 190 basis points for significantly improved cash flow.
Rate: 2.77% Fixed
Term: Seven Years
Amortization: 30 Years
LTV: 60%
Recourse: Entity Level Only inclusive of Carve-Outs
Loan Fee: 25 Basis Points
