Transaction Description:
George Smith Partners successfully arranged a 5-year, non-recourse, interest only loan for a 91% occupied, multi-tenant office building in the Pasadena Playhouse District. While the building was originally built as traditional office, the basement has been converted to a 2-story gym with a pool, and two of the upper floors contained a cooking school which is now being used as a commissary to manufacture food for distribution. The special-use nature of the space provided a challenge in today’s market. GSP worked with a lender to validate the financial strengths of the tenants and their need to be in this building. While most office building refinances require new cash to be invested at closing, GSP was able to negotiate a small amount of cash-out that the Sponsor is allowed to use for any future leasing requirements. This is the third time that GSP has financed the building, for two separate owners.
