Term: Fixed for 5 years
Prepayment Penalty: 5,4,3,2,1
George Smith Partners arranged $4,000,000 of non-recourse and cash-out on a refinance of an office building in Beverly Hills. The non-recourse loan is fixed for the first 5 years at 4.48%. There is no requirement for a reserve account which is typically required for tenant improvements and leasing commissions when there are rollover leases in place. The Capital Provider was able to give the Sponsor credit for actual expenses, instead of historical P&Ls. The most recent P&Ls included many capital expenditures and non-recurring expenses, as the Sponsor has spent a great deal of funds in renovating and re-leasing a large portion of units
$13,500,000 Non-Recourse Cash-Out First Mortgage 14-Day Close on a Vacant Building; in Los Angeles, CA
June 19, 2019
George Smith Partners arranged a $13,500,000 non-recourse, cash-out first mortgage from a REIT to refinance out a maturing bank loan on a 36,600 square foot vacant building located along a major thoroughfare in Hollywood, California. The building had previously been 100% occupied by a now defunct retailer and this loan provides up to 18 months of term for the Sponsor to source a replacement tenant. The loan repaid existing debt, covered 100% of closing costs, and repatriated substantial equity to the Borrower. Although this loan is non-recourse, the Lender did not require an appraisal or other third-party reports, nor did it require an interest or carry reserve despite no in-place cash flow. Sized to 60% of value, the loan priced at 6.90% fixed for the initial 12-month loan term.