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$11,200,000 Perm Financing for Unanchored Retail; Tucson, AZ

Rate: 5.0%
Term: 10 Years
Amortization: 10 Years of Interest-Only
LTV: 60%
Prepayment: Defeasance
Fee: None
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully closed a loan at 60% Loan-to-Value for the acquisition of a neighborhood shopping center in an A+ location in Tucson. The Sponsor was seeking non-recourse financing at the lowest rate. While the Sponsor was purchasing the Property as a long-term hold, the Property had 50% of the tenants rolling within 2 years of acquisition. GSP was able to find a lender that was comfortable with this roll given the strong performance during COVID, leading to a higher chance of lease renewal. While processing the loan, GSP advised the Sponsor to lock the SOFR index prior to the CPE announcement, saving them from a 30-basis point increase to the all-in rate.

Advisors

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    George Smith Partners secured $4,517,000 for the acquisition of a multi-tenant, retail center in Villa Park, Illinois. The non-recourse permanent loan is fixed at 3.75% for ten years with full-term interest only and a defeasance prepayment penalty structure.

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