$38,750,000 Acquisition Loan for Retail Parcels in Prime Southern California Location

Rate: LIBOR + 3.75%
Term: 36 months with a 12 month extension
Amortization: Interest Only
LTC: 70%
LTV: 62% of as-is value
Guarantee: Recourse
Prepayment Penalty: 1.0% for first 12 months, 0.5% for next 12 months, open thereafter

George Smith Partners secured $38,750,000 of acquisition financing for the purchase of a retail assemblage in West Hollywood, CA. The Assemblage is currently 100% occupied on month-to-month leases and provides sufficient cash flow to cover all operating and debt service costs. The Sponsor purchased the property with plans to entitle for a mixed-use project which would include condos and a hotel. The lender was able to get comfortable with the entitlement risk due to the Sponsor’s strong track record in the market, the irreplaceable location, and the ability to generate significant additional revenue through already approved billboards. The recourse loan was sized to 62% of as-is LTV, 70% LTC, and is priced at LIBOR + 3.75%. The financing has a 3-year term with a 1-year extension and a stepdown prepayment.

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  • Expand

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