| Transaction Description: |
| $10,300,000 (75% LTC, Non-Recourse Debt) and $3,750,000 (85/15 Co-Investment, “Junior Loan”) for the Acquisition and Redevelopment of a 67,070 sq. ft. Class B Office Building in Long Beach, CA. GSP secured financing for the acquisition and redevelopment of a 78% occupied, Class B office building totaling 67,070 sq. ft. in Long Beach, CA, with 60% of the existing tenants rolling over the next three years. The acquisition was purchased off-market by experienced sponsors. |
Challenge: A perceived softening of the office market in Long Beach made many lenders hesitant to fund an office reposition. Additionally, a drought of equity investors following the credit crunch further inhibited interest in the transaction. |
Solution: GSP identified a lender comfortable with the Long Beach office market and able to fund the full capital stack of the transaction (up to 98% LTC). |
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SENIOR LOAN: $10.3M
Rate: LIBOR + 300
LTC: 75%
Term: 36 mos, with 1 - 12 mo extension
Amort: Interest Only
Fee: 1%
Lender Fee: Par
Recourse: Only to Entity
JUNIOR LOAN: $3.75M (85/15 co-investment)
Rate: 85/15 Split to a 10% Preferred Return, 60/40 Thereafter
Fee: 2%
Key Players: Scott Bottles, Joshua Roseman, Kaleb Keller
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