| 4 – 6 – 2011 |
| Transaction Description: GSP obtained a 12-month forward commitment to provide a take-out for the construction debt on a partially-constructed three-story 50,000 sf outpatient surgery facility. The center is pre-leased to an investment-grade tenant. The facility, to be complete in December 2011, features special improvements for imaging and radiation services, a robotic six-floor subterranean parking garage, and LEED Gold certification. |
| Challenge: Due to inflation concerns, the borrower wanted to lock-in today’s long-term rates – 12 months prior to completing construction. Until recently, forward take-out commitments were constrained to six-months and rate-lock premiums were prohibitive. The building is valued at more than $1,200/sf. |
| Solution: GSP solicited conduits, bond issuers, and portfolio lenders (life companies & pension funds) to identify a lender willing to lock rate today for a 12 month forward funding. GSP highlighted the quality of the real estate & borrower, and built a strong case to support the property’s high valuation. The Sponsor selected a life company loan at a competitive rate, locked at application in February 2011, with a forward premium of 4 bps per month. The lender was distinguished by their understanding of the location & tenant, their willingness to commit 12 months before funding, and the trusted relationship they developed with GSP and the client. |
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