Rate: 4.43% Fixed
Term: 10 years
Amortization: Interest Only for two years then 28-year amortization thereafter
LTV: Up to 70%
Prepayment: Stepdown of 6%, 5%, 4%, 3%, 2%, 1% then Open
Guarantee: 50% Recourse
GSP successfully placed the cash-out, partial-recourse, refinance loan for a 100% leased single-tenant truck terminal industrial facility in Fontana, California. The financing allows the sponsor to retire its construction loan on the asset, lock in a low 4.43% fixed coupon for 10 years, and provide an immediate return of equity. GSP was able to identify a lender that was comfortable with structuring a 10-year loan term despite the tenant’s five-year lease term by underwriting the income associated with the tenant exercising its two five-year extension options. The interest rate is fixed at 4.43% for a ten-year term on an interest only basis for the initial two years then amortizes thereafter.
Advisors
-
Principal/Co-Founder
-
Senior Vice President
-
Senior Vice President
-
Vice President
Related Financings
-
$7,000,000 Cash-Out, Non-Recourse, Refinance on a Single-Tenant Property; Venice Beach, California
March 18, 2020
George Smith Partners arranged a $7,000,000 ($901/sf) cash-out, non-recourse, first mortgage from a REIT to refinance a single-tenant, owner-user office property in Venice Beach, California. The Lender was comfortable with providing the cash-out financing, although the single tenant was in bankruptcy protection due to the property’s irreplaceable location which is blocks from the ocean in Venice Beach. The financing provides 12 months of bridge term while the Tenant works through bankruptcy proceedings. Although the loan is non-recourse, the Lender did not require an appraisal or other third-party reports. Sized to 60% of the Lender’s underwritten value, the loan priced at 6.90% fixed for the 12-month loan duration.
Rate: 6.90% Fixed
Term: 12 Months
Amortization: Interest Only
Loan to Value: 60%
Lender Fee: 1.00%
Prepayment: Open Full Term
Guaranty: Non-Recourse -
Cash-Out Refinance Loan for Single-Tenant Special Purpose; Fixed for 7 Years at 4.35%
March 21, 2018
George Smith Partners secured a cash-out loan for the refinance of a single-tenant, special purpose property in Los Angeles leased to a preschool. The loan is fixed at 4.35% for 7 years and then floats at the 3 year CMT rate + 1.75%. Most lenders required a 25-year amortization for this specialty use property, but the selected lender was able to provide a 30-year amortization. The loan has no prepayment penalty and closed 45 days from application.
Rate: Fixed at 4.35% for 7 years, then floating a 3 year CMT + 1.75%
Term: 10 years
Amortization: 30 years
Prepayment Penalty: None
LTV: 70% of value
DCR: 1.3x
