| Transaction Description: |
| $18,600,000 Fixed Rate, Permanent Financing for a Two-Tenant Office Building in Silicon Valley. GSP successfully arranged financing for the take-out of a construction loan for a 30,000 sq. ft., pre-leased, Class-A office building. |
Challenge: Because the building had two tenants, many lenders were not willing to look at the transaction, even though the building was 100% pre-leased. Additionally, the Sponsor engaged GSP to solicit financing in April 2008 in anticipation of an increasingly tight credit market, even though the second tenant was not scheduled to take occupancy until October 2008. |
Solution: GSP located a lender comfortable with a two-tenant office building and able to provide a 90 day rate lock sufficient for the first tenant to take occupancy. The lender agreed to fund with one tenant in occupancy (approx. 50% of the total sq. ft.) and the second tenant in the process of completing their tenant improvements. |
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| Rate: 6.18% Fixed |
| Term: 7 yrs |
| Amort: 30 yrs |
| LTV: 65% |
| Prepayment: 5,5,4,4,3,2,1 |
| Lender Fee: Par |
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Recourse: 25%
Key Players: Steve Bram, Allison Higgins
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