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$13,000,000 Non-Recourse Construction Financing for a 144,000 SF Industrial Property; Madera, CA

Rate: 7.00% + LIBOR
Term: 24 Months with Two Six-Month Extension Options
Amortization: Full Term Interest Only
LTV: 65%
LTC: 70%
Prepayment: 12 Months’ Minimum Interest
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully arranged the non-recourse, construction financing of a 144,000 SF flex-industrial property in Madera, California. The Property is a 74-unit flex industrial/warehouse that will target the underserved small-scale user. The Sponsors are capitalizing on the very low vacancy rate in the Madera/Fresno industrial market. The Sponsors are very knowledgeable in this market, but have not completed a ground-up construction project. Their lack of direct experience and the smaller market made it difficult for many lenders to provide financing. George Smith Partners was able to educate the selected Lender on the need for this product in this market and the industrial experience of the Sponsorship. This allowed the Lender to get comfortable with the transaction and provide very favorable financing.

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