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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.
Rate: L+290
Term: 15 Months + 1-Six Mnth Option
Amort: IO
LTC: 75%
Lender Fee: 0.8%
Advisors: Gary E. Mozer, David Stepanchak