$41,000,000 in Permanent Financing for 187,000 SF, Shopping Center in Lakewood, CA

Rate: 3.97% Fixed for Entire Term
Term: 10 Years
Amortization: Full-Term Interest Only
Loan-to-Value: 65%
Guarantee: Non-Recourse
Lender Fee: Par
Prepayment: Defeasance

Transaction Description:

George Smith Partners secured $41,000,000 in non-recourse debt to refinance an existing senior and mezzanine loan for a regional Southern California shopping center. The Property is 187,000 square foot center; 100% occupied, with anchor tenants Hobby Lobby and Michaels. GSP worked with the lender to assuage B-Piece buyer concerns of the anchor tenant’s termination risk. Loan proceeds repaid the existing senior and mezzanine loans, covered closing costs, and provided a return of equity to the Sponsor. The financing is a 10 year full term interest only loan that maximizes cash flow for the Sponsor. The non-recourse fixed-rate loan priced at 1.57% over the 10-year Treasury that had a floor of 2.40% at application.

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