$2,080,000 Permanent Refinance of a Neighborhood Retail Center

Transaction Description: GSP successfully placed the $2,080,000 refinance for a stabilized 2000’s vintage retail center in Long Beach, California. The center is 100% leased and occupied with a diverse mix of national and local tenants. Fixed at 4.75%, the ten-year loan amortizes over 25-years and has flexible pre-payment, allowing for up to 10% of the initial loan balance to be paid down per year without penalty.

Challenge: Sponsor sought a permanent loan that offered a 10-year fixed term with flexible prepayment. The small loan amount made it ineligible for most institutional lending programs.

Solution: GSP leveraged lender relationships and demonstrated strong sponsorship to identify a capital source willing to lock in a long-term fixed rate loan for a transaction that is typically too small for many capital providers to underwrite. Based on the borrower’s strength, the lender agreed to a prepayment structure whereby the Sponsor may pay down up to 10% of the original loan principal annually.