$4,500,000 Cash-Out Refinance of Medical/Office Building

Rate: Prime + 0.25%
Term: 5 years
Amortization: 25 years
LTV: 65%
Prepayment: None
DCR: 1.25 at stabilization

George Smith Partners secured a $4,500,000 cash-out refinance loan for a 43,435 square foot medical/office property in Los Angeles. Within the past year the Borrowers had successfully secured a number of new leases which considerably improved the cash flow. GSP sourced a lender to pay off the in-place loan and provide a partial return of equity. Although the property has several anchor tenants under long term leases, multiple tenants continue to operate under month-to-month leases. GSP demonstrated that these tenants had remained in place for several years and maintain a close relationship with the Sponsors. Because of this relationship, our capital provider included cash flow from month-to-month and short-term tenants in their underwritten cash flow. The loan closed 50 days from application.

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