Rate: 3.75% for 7 Years
Amortization: 25 Years
DCR: 1.15 on Gross Income
LTV: 70%
Guaranty: Non-Recourse
Prepayment: Locked for three years then 4-3-2-1
Transaction Description:
George Smith Partners placed the non-recourse cash-out refinance of a stand-alone CVS in a Dallas suburb. Our Capital Provider underwrote to a 1.15 DCR without any deductions (vacancy, capex) for the net-leased asset to an investment grade tenant. There were no impounds or tenant improvement reserves taken as the tenant pays all expenses directly on their 20-year lease. Amortized over 25 years, the seven-year term was locked at 3.75% without the requirement of a repayment guaranty.
Related Financings
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$5,000,000 Acquisition of a Single Tenant Rite Aid in a Tertiary Market
March 22, 2017
Transaction Description:
George Smith Partners arranged $5,000,000 for the acquisition of a newly constructed, 17,200 square foot single tenant build-to-suit Rite Aid. Our Sponsor was focused on minimizing monthly debt service costs plus maintaining prepayment flexibility. The proposed Rite Aid acquisition by Walgreens and the tertiary market location added levels of complexity to the transaction. After evaluating the firm’s extensive lending relationships, GSP sourced a regional lender experienced with this location and comfortable with Sponsor’s financial strength, track record, and personal guarantee. The loan is fixed at 4.75% for five years with a 30-year amortization schedule, sized to a 1.20x DSCR, and is open to prepayment at any time. The lender charged a nominal fixed $2,500 cost for loan processing and documentation.
Rate: 4.75% fixed
Term: 5 years
Amortization: 30 years
DSCR: 1.20x
Prepayment Penalty: None
Lender Fee: 0.50%
Recourse -
$7,000,000 Non-Recourse Financing for a Single Tenant Investment Grade Retail Property in Suburban Northern California
February 22, 2017
Transaction Description:
George Smith Partners successfully placed ten year fixed rate financing on a single tenant retail property located in Northern California. The building is occupied by a national drug store tenant on a 75 year lease with a 2032 termination option. The tenant signed a fixed rate lease at the top of the market in 2007 but reported year over year sales decline since 2012 due to increased competition in the trade area. These two factors resulted in a high occupancy cost. GSP identified a national lender able to underwrite the tenant’s full rent because of the lease’s long-term investment grade characteristics, despite the high current occupancy cost. Additionally, GSP highlighted the recent closure of another drug store in the trade area that will increase the tenant’s market share going forward and increase sales. The loan structure includes five years of Interest Only payments to maximize Sponsor cash flow, then converts to a 30-year amortization schedule. The 67% leverage loan has a fixed rate coupon of 4.87% for the 10-year term.
Rate: 4.87% Fixed
Term: 10 Years
Amortization: 5 Years Interest only; 30 Year amortization thereafter
LTV: 67%
Guaranty: Non-Recourse
Lender Fee: None- Advisors: Nick Rogers
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Single-Tenant Refinance – 65% LTV in a Tertiary Market
May 4, 2016
Transaction Description: George Smith Partners arranged the $1,350,000 refinance of a single tenant Tractor Supply Company in Paris, Tennessee. A ten-year loan term was structured despite only four years remaining on the single tenant lease. Fixed at 4.35% for ten years, the loan amortizes over 25 years and was sized to 65% of current value. There is no prepayment penalty for this recourse loan.
Rate: 4.35%
LTV: 65%
Term: 10 Years
Amortization: 25 Years
Recourse
Lender Fee: 0.50%
Prepayment: Open- Advisors: Steve Bram Allison Higgins
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$3,680,000 Permanent Financing for a Single-Tenant Co-Op Grocery Store
September 5, 2014
9 – 3 – 2014
Transaction Description: JJay Brooks secured a permanent loan for a non-credit single tenant grocer in a tertiary Northern California market. This financing provided a consolidation of the existing 1st Trust Deed and a higher yielding 2nd. As a build-to-suit, the lease rate was established as a return on cost. That and its’ tertiary location complicated the appraisal comparative process. Mr. Brooks identified a capital provider who was comfortable with the sales history and structured a tighter amortization period to minimize event risk. The 7 year term loan was sized to 65% LTV and is fixed at 4.90%, amortized over 15 years. This portfolio lender offered a step-down prepayment with the final two years open without penalty. Rate: 4.90% Term: 7 Years Amort: 15 Years LTV: 65% Prepayment: 5,4,3,2,1,0,0, Recourse Advisor: JJay Brooks -
$4,000,000 Acquisition for Single Tenant Tractor Supply
July 10, 2014
2 – 9 – 2014
Transaction Description: George Smith Partners arranged acquisition financing for a single tenant Tractor Supply located in a tertiary northern California market. The property was acquired as one of three properties purchased by a borrower in a 1031 exchange. Although the subject is 100% leased to a national credit tenant, lenders were concerned about the “dark value” given the lease term is inside the 10 year loan termination date and the thin commercial market. 65% leverage was required in order for the Borrower to complete his acquisition of the other two properties in this exchange. The capital provider recently funded a similar transaction for a Tractor Supply and was comfortable with the probability that Tractor Supply will renew at lease expiration. The non-recourse, 5.20% fixed rate loan is amortized over 25 years. Rate: 5.20% Term: 10 Years Amort: 25 Years LTV: 65% Prepayment: Defeasance Non-recourse Lender Fee: Par Advisors: Stephen Stein, Teddy Stutz -
Cash-Out Refinance: Single Tenant Retail
May 29, 2014
5 – 28 – 14
Transaction Description: George Smith Partners arranged the cash-out refinance of a single-tenant property located in the southwestern United States, occupied by a Canadian mattress company. The Borrower purchased the property all-cash at the end of 2013 and sought to recapitalize his liquidity to acquire additional investment properties. Without a US parent company, many capital providers were hesitant on quoting this opportunity. GSP identified a local portfolio lender comfortable with the corporate lease guarantor and underwrote the location and long-term value of the property. The 10-year term is fixed for five years at 4.50% and does not carry a pre-payment penalty.
Rate: 4.50% Fixed for 5 Years Term: 10 Years Amort: 25 Years Prepayment: None Recourse Advisors: Stephen Stein, Teddy Stutz
