$11,450,000 in Permanent Financing for a 56 Hangar Private Airport; Torrance, CA

Rate: 4.75% Fixed
Term: 18 years (fixed for the first 5 years, then rate adjusts)
Amortization: 18 Years
Loan-to-Value: 75%
Guaranty: Recourse
Prepayment: Yield Maintenance

Transaction Description:

George Smith Partners secured $11,450,000 of life-company debt to refinance an existing senior loan for a regional private airport facility in Southern California. The Property is a 133,490 square foot, 10 building, 56 hangar private airport facility on a ground lease to the City of Torrance. The remaining term of the ground lease is only 23 years, which created limitations for the amortization of the senior loan. GSP worked with a lender that allowed for an amortization that equaled 80% of the remaining years of the ground lease. Loan proceeds repaid the existing senior loan, covered closing costs, and provided a return of equity to the Sponsor. The financing is an 18 year term loan that maximizes cash flow for the Sponsor. The recourse fixed-rate loan is priced at 4.75%.

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