$32,700,000 (85% Loan-to-Value) Non-Recourse Financing for the Acquisition of a 33-Property Single Tenant Dollar General Portfolio

Rate: 5.74%, Fixed
Term: 10 years
Amortization: 3 Years Interest Only; 30 Year Amortization thereafter
Loan to Value: 85%
Prepayment: Defeasance
Lender Fee: None

Transaction Description:

GSP successfully placed $32,700,000 of non-recourse, ten-year, fixed-rate debt for the acquisition of 33 newly-constructed freestanding retail buildings 100% leased to Dollar General. The individual assets have 15-year lease terms and are located primarily in the Upper Midwest and Southern United States. GSP executed the financing concurrent with construction completion and sourced a lender who, due to Dollar General’s investment grade credit rating (S&P: BBB) and the geographic diversity of the assets, was able to achieve 85% leverage financing (including a mezzanine debt component) on the portfolio at a 5.74% blended fixed coupon plus three years of Interest Only payments on the ten year loan term, despite an absence of sales history and concurrent tenant lease terms expiring five years after loan maturity. This structure minimized the equity required to close the transaction and provides additional cash flow to the Sponsor during the first three years of the loan term. The loan structure also provides the Sponsor flexibility to release properties from the loan collateral in the event of sale after year three of the loan term, and allows the Sponsor to release up to 30% of the individual assets from the mortgage collateral and substitute like kind properties through year nine of the term.

Advisors

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