Back to Recent Transactions Listing

FINfacts Date: 1/10/2008

Transaction Description: $9,770,000 (56% LTV) permanent financing of an office building in Irvine, CA. GSP secured permanent financing for a single-tenant, 47,088 square foot office building located in Irvine, CA. Challenge: The property is 100% leased to a credit tenant with significant subprime mortgage exposure on a lease which expires in 2010. In addition, the softening of the local office market created by the mortgage meltdown increased the rollover risk at lease expiration. Solution: GSP identified a bank willing to provide a non-recourse loan based on a combination of strong sponsorship and loan structure to provide protection in the case the tenant vacates. The lender was also able to maintain the rate in spite of market turmoil affecting both the tenant specifically and the credit markets in general. Rate: 10 Yr T +1.70% Term: 10 yrs Amort: 3 yrs IO, followed by 30 yrs LTV: 56% DCR: 1.20 Prepayment: Yrs 1-5: 5%, 4%, 3%, 2%, 1%; 0% thereafter Non-recourse Lender Fee: Par Key Players: Gary E. Mozer, Scott Bottles, Joshua Roseman, Kaleb Keller