| Transaction Description: |
| $4,000,000 (60% LTV, Non-Recourse) Cash-Out Refinance, of Non-Anchored Multi-Tenant Building in Downey, CA. GSP secured permanent cash out financing for a maturing CMBS note. |
Challenge:
1. Property experienced a 10% economic vacancy during the application process and the space was not leased at the time of close. The lender wanted additional proof of market vacancy levels to justify underwriting.
2. Lender agreed to a 120 day rate lock at application. Rates for this lender increased by 50 basis points during the processing of the loan.
3. New environmental reports were ordered due to a historical existence of a dry cleaning operation. |
Solution:
1. Due to the strength and experience of the borrowing entity, the lender agreed to make exceptions to their typical underwriting.
2. Lender extended the rate lock up to a total of 150 days at no additional cost due to the relationship with George Smith Partners.
3. Environmental Phase II report was ordered and completed within a 10 days |
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| Rate: 6.20% |
| Term: 7 yrs |
| Amort: 30 yrs |
| LTV: 60% |
| DCR: 1.25 |
| Prepayment: Step-Down |
| Non-recourse |
| Lender Fee: Par |
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Key Players: Marc Schillinger
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