Term: 10 year fixed rate loan
Amortization: 25 years
Prepayment: No prepayment penalty
Lender Fee: Par
Rate Lock: Free rate lock at signing of LOI for 90 days
George Smith Partners secured $13,370,000 in cash-out permanent refinancing for a Class A 108,958 SF two-tenant office building in Salt Lake City, Utah. The purpose of the cash-out refinance is to pay off a maturing loan. With strong sponsorship and an experienced real estate investor, GSP identified a lender who was able to get comfortable with 75% loan to value. The loan was funded prior to receiving SNDA, and there was no holdback or reserves. Fixed for 10 years at 4.625%, the loan amortizes over 25 years with no prepayment penalty.
July 7, 2021
George Smith Partners arranged $5,350,000 in cash-out permanent financing for an owner-user office building located in Downtown Riverside, CA. The Sponsor approached GSP to help assist with the refinance of the Property to help relocate their company headquarters from the east coast. The Sponsor was on a strict deadline with their existing lender, only having 60 days to refinance before the current loan maturity. At the time of the refinance process, the Sponsor was close to completing exterior and interior renovations, including common area upgrades. GSP had to quickly identity a lender who could deliver certainty of execution on short notice, while delivering competitive terms. GSP was able to provide the Sponsor with a 25-year term, and the first 5 years being fixed at a low rate of 4%. The first 12 months are interest only, before converting to 25-year amortization thereafter. There is additional flexibility within the loan structure because there is no prepayment penalty. The cash-out loan allows the Sponsor to use more equity towards continuing to grow their business. Thanks to our long-standing relationship with the Lender, GSP was able to meet the Sponsors deadline and close this transaction within 60 days.
$11,825,000 Cash-Out, Non-Recourse, Permanent Financing with a 3.35% Coupon for a 20-Year Term on an Office Property; Fayetteville, Arkansas
May 12, 2021
George Smith Partners successfully placed $11,825,000 ($200/SF) in non-recourse financing that provided substantial cash-out to the Borrower with a 3.35% fixed-rate coupon for a 20-year loan term on a University-affiliated research and technology office building during the COVID-19 pandemic. The loan was creatively structured as a credit tenant lease financing due to the University’s backstopping the Property’s cash flow through a master lease. GSP worked with the Borrower, Lender, and University to amend the master lease so that it satisfied the needs of all three parties to facilitate both the refinancing as well as successful donation of the building to the University’s technology foundation, which occurred concurrently with the close of this financing.
December 18, 2019
George Smith Partners successfully arranged $3,000,000 in a cash-out permanent refinance secured by the sandwich leasehold interest in a single-tenant leased office building in Irvine, California. The Subject Property is in the heart of Orange County’s business district and next to the Irvine Business Complex and John Wayne Airport. The neighborhood is in a mature stage with limited amount of vacant land available for new development. The Property consists of three multi-story buildings having 69,474 SF net rentable space.
The Subject Property is encumbered by a ground lease. The leasehold interest, ground lease, and tenant improvement lease all expire in five years, with no extension options. The non-investment grade tenant has a six year lease remaining and they are not required to provide business financials.
GSP identified a capital provider able to structure a five year fully amortizing loan. The Sponsor’s considerable real estate track record and financial strength further encouraged the Lender to provide a low interest rate. The recourse loan is fixed at 3.00% with a 5-year term and will be fully amortized in five years.
Rate: 3.00% fixed
Term: 5 years
Amortization: 5 years
Loan to Value: 44%
Global DSCR: 1.25X
Prepayment: 3%, 2%, 1%
Lender Fee: Par
- Advisors: Gilda Rivera