$11,000,000 Non-Recourse Retail Permanent Acquisition Loan

Transaction Description: GSP secured an $11,000,000 senior loan for a multi-tenant retail center in Orlando, Florida. The Sponsor was seeking a 50% leverage, 10 year fixed-rate loan, from a portfolio lender with aggressive pricing. GSP identified a life insurance company that was able to rate lock for no fee at application at 3.95%, removing all rate volatility during due diligence. The Lender did not require any reserves or impounds, not even tax and insurance impounds. A flexible prepayment penalty was structured, allowing for a 3%, 2%, 1% step-down penalty in the last three years of the loan term.

Challenge: The property was constructed in 2009 and took three years to lease to market occupancy. The center does not have a strong national anchor and 17% of gross income comes from two billboards.

Solution: GSP demonstrated that the property would maintain current occupancy even though the initial stabilization was slow as the property leased very quickly once asking rents were decreased to 2010 market rent. GSP identified a lender who understood the value of the billboards given the visibility and traffic counts.