$23,425,000 Non-Recourse 85% Loan-to-Cost Acquisition and Renovation Financing on a 100% Vacant Retail Property

Transaction Description: George Smith Partners successfully placed $23,425,000 in non-recourse bridge debt to acquire an 85,000 square foot vacant freestanding retail building, construct two single-tenant outparcel pads, and demise the existing big box improvements into a multi-tenant property anchored by a grocer and national discount retailer. Loan funding was contingent on signed leases for the grocer and junior anchor. These two tenants will contribute 54% of proforma income in the aggregate. Approximately $12,700,000 of loan proceeds were held back at closing to fund a) future hard and soft construction costs including a developer fee and b) an interest reserve covering debt service shortfalls plus carry costs. Interest is not paid on the $12,700,000 until drawn. Priced at LIBOR + 550, the two year term loan was sized to 85% of total project cost.