All Terms Confidential
George Smith Partners arranged $44,500,000 for heavy bridge financing in San Louis Obispo, CA to recapitalize and fund construction for additional uses on an existing asset. The completed Project will include five uses including multifamily, warehouse, office, self-storage, and a brewery. This is among the largest private projects actively in development in the local market.
The Sponsor has been very creative in obtaining the highest and best use for the asset in a supply constrained market. Despite challenges facing construction projects in today’s volatile commodity market, GSP was able to secure a capital provider to structure high leverage supported by the strong market and underwriting.
August 22, 2013
8 – 21 – 13 Transaction Description: George Smith Partners successfully placed the 72% of cost construction debt for a single tenant ground-up development in a mid-western tertiary market. The flex-office & industrial building is 100% pre-leased to the subsidiary of an international corporation. The capital markets were less than enthused with the 57,000 MSA population and single tenant occupancy. The easily divisible project design and strong tenant viability mitigated market concerns. The construction loan includes an optional five-year mini-perm upon rent commencement at 2.75% over the 5 year LIBOR. The 15 month construction loan was sized to 75% of cost and priced at LIBOR + 2.90%, sub-3.20% today. There is no prepayment penalty or exit fee for the construction debt.