Rate: 3.75% Fixed for 10 years
Term: 10 years
Amortization: 30 years
Prepayment Penalty: Defeasance
DCR: 1.30x
Interest Only: 10 years
Guaranty: Non-Recourse
Origination Fees: Par
Transaction Description:
George Smith Partners secured $4,517,000 for the acquisition of a multi-tenant, retail center in Villa Park, Illinois. The non-recourse permanent loan is fixed at 3.75% for ten years with full-term interest only and a defeasance prepayment penalty structure.
One of the tenants was a newly opened gym franchise with no historical sales information for this center. Also, during the loan process, the Seller was finalizing a subdivision of the parking lot which required multiple levels of municipality approvals.
GSP identified a capital source who understood the strength of the asset, the experience of the Sponsor and its desirable suburb location, which is 20 miles outside of Downtown Chicago. The Capital Provider worked through the timing of the issuance of the subdivision approval and was able to close as soon as the approval was finalized. The efficiency of our Capital Provider allowed the Sponsor to be able to rate lock and close as soon as the approval was stamped, taking advantage of the low interest rate environment.
Advisors
-
Jonathan Lee
Managing Director & President, AXCS Advisors
-
Shahin Yazdi
Managing Director & Chief Operating Officer, AXCS Capital
-
Matthew Kirisits
Vice President
-
Kyle Redmond
Vice President
Related Financings
-
Low Debt Yield, 3.77% Coupon Permanent Financing for the Acquisition of a Recently Developed Grocery-Anchored Retail Center; FL
September 25, 2019
George Smith Partners successfully placed $14,690,000 in non-recourse, ten-year fixed rate first mortgage debt for the acquisition of an approximately 54,000 square foot, 96% occupied, recently developed retail center in Western Florida. An investment-grade grocery anchor on a newly signed long-term lease comprises approximately 75% of the collateral. The anchor has no sales history at the Property and is not required to report sales going forward. GSP sourced a lender to provide full term non-recourse Interest-Only financing subject to a low 7.35% debt yield. The 65% leverage loan has a 3.77% fixed coupon over the ten-year term.
Rate: 3.77%, Fixed
Term: 10 years
Amortization: Full Term Interest-Only
Loan to Value: 65%
Prepayment: Defeasance
Lender Fee: None
