- Rate: 4.75%
- Term: 10 year fixed rate loan
- Amortization: 25 years
- Loan to Value: 64% (as-is)
- DSCR: 1.25X (Based on Actual Income)
- Prepayment: No prepayment penalty
- Guaranty: Recourse
- Lender Fee: Par
- TI/LC Reserves: No upfront TI/LC holdbacks and on-going reserves
- Free rate lock at signing of LOI for 5 Months
George Smith Partners successfully arranged $1,750,000 in cash-out permanent refinance secured by a 107,965 SF, 9-tenant shopping center in Rialto, California. The shopping center is currently 100% occupied, anchored by Superior Grocers, CVS and McDonald’s. The purpose of the cash-out refinance is to pay-off an existing loan, and use the remaining balance for future investment.
The subject property is encumbered by a ground lease with 12 years of the term remaining. GSP identified a capital provider who was comfortable with the ground lease due to the financial strength and track record of the Borrower. GSP facilitated communications between Borrower and Lender to clarify complicated subleases between tenants, and assessed the property’s cash flow risks upfront. The loan is fixed for 10 years at 4.75%, 25 year amortization. No prepayment penalty.
