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$19,700,000 Non-Recourse Permanent Financing for Power Center, 10 Years Fixed Rate at 3.03%, 69%LTV; Tertiary Midwest Market

Rate: 3.03% Fixed
Term: 10 Years
Amortization: 2 Years Interest Only, 30 Year
LTV: 69%
Prepayment: Yield Maintenance
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully placed $19,700,000 in non-recourse permanent debt for the refinance of a 185,000 SF power center in a tertiary Midwest market. The Property is fully leased with all tenants in occupancy and is comprised of strong national credit tenants with long term leases. It serves as the main retail center for its town. The proximity to a secondary metropolitan market 10 miles away promotes crossover shopping at the center.

At the beginning of COVID-19, the state government closed all non-essential businesses for 3 months. Throughout the COVID-19 pandemic, none of the tenants requested rent abatement and limited rent deferral was required. The strength of the Sponsor as a national owner and operator of retail centers, the lack of negative impact due to COVID and the fact that the center was the most dominant in the City all contributed to the center’s attractiveness to lenders. The timing occurred in the face of a large contraction of lending on retail. GSP guided the financing from application to closing in only 30 days and secured a 10-basis point reduction in the coupon on the day of rate lock.

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