$4,200,000 Permanent Flex-Office Acquisition Financing w/Expiring Leases

Transaction Description:  Gilda Rivera and Salar Royaei placed the $4,200,000 acquisition loan for a 31,000 square foot flex-office building in Pasadena, California. The current owner had acquired the asset “all cash” through a foreclosure sale and recapitalized his balance sheet through this financing. The five year loan was funded to 73% of original purchase, is fixed at 4.0% with 30 year amortization. A step-down prepayment was negotiated to allow for future reposition flexibility.

Challenge: Purchased out of foreclosure, there was no historical operating history on the property. 50% of the leases expire within the next 24 months and the subject required a capital improvement program to bring differed maintenance items current.

Solution: GSP identified a relationship lender who mitigated the property’s past history, lack of historical information and short leases with the Borrowers’ business plan and his capacity to execute in this market. Market strength and the Sponsor’s resume and financial capacity allowed the lender to fund based on market conditions rather than specific asset performance.