$16,500,000 Non-Recourse Bridge Refinancing of Columbus, Ohio Shopping Center

Transaction Description:  GSP secured a $16,500,000 bridge loan for the refinance of a 200,000 square foot retail center in Columbus, Ohio. The asset is 82% occupied with 15% of the vacancy coming from a single large space. The loan was sized to 80% of the current value and 75% of the stabilized value and included an earn-out to pay for tenant improvements and leasing commissions once the large space was leased.

Challenge: While the property has good current cash flow and many long-term tenants, the large vacant suite had been vacant for many years, making it difficult for some lenders to get comfortable with underwriting that future income. The lender also needed to close within 30 days to meet the existing loans payoff date. During due diligence the Phase 1 came back requiring a Phase 2 because of the presence of a dry cleaner onsite.

Solution: GSP identified a lender that was comfortable with the required additional leasing as the Sponsor had a long, proven track record of successful retail ownership and management. The lender was also very nimble and able to close in the required timeframe. Because of GSP’s strong relationship with environmental companies, GSP was able to engage a Phase 2 to be completed within 1 week, allowing the loan to close on time.