$10,000,000 Senior Loan Workout on a 212,000 SF Mixed-Use Center in the Inland Empire, California

Transaction Description:  GSP successfully negotiated the modification of a maturing loan secured by a 65% occupied, 212,000 SF mixed-use center in the Inland Empire of California. GSP helped the borrower obtain a two-year extension at the existing interest rate with only closing costs paid out-of-pocket at closing.

Challenge: The mixed-use center is located in a secondary market and is currently 65% occupied with a unique tenant mix including an entertainment venue, fitness center, medical office users and trade schools. The Borrower had a maturing loan that was housed in a CDO, and the capital markets were unable to become comfortable with the collateral.

Solution: GSP demonstrated the strength of the Sponsor, the low existing cost basis and the strong in-place cash flow due to long-term tenancy and limited rollover risk to negotiate a one-year extension with another one-year extension option at the existing interest rate. The Sponsor was allowed to pay down the principal balance utilizing the property’s cash flow after debt service, limiting his out-of-pocket costs at closing.