Transaction Description:

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.


Rate: 6.90% Fixed
Term: 12 Months with One, Six-Month Extension Option
Amortization: Interest Only
Loan to Value: 60%
Lender Fee: 1.00%
Prepayment: Open Full Term
Guarantee: Non-Recourse