Transaction Description:
George Smith Partners secured a $4,760,000 acquisition loan for a vacant 12,300 square foot retail property in Los Angeles, CA. The Lender provided proceeds of 70% of the acquisition price at a rate of 7.325%, fixed for the first three years. The loan was closed with a regional bank.
The Property was delivered as a vacant shell. The buyer intends to lease it to restaurant and retail tenants. Given the current market volatility, most of the other quotes were from private money lenders at much higher rates. To support the purchase price and future valuation, an extensive set of sales and lease comps were provided to the lender and the appraiser. The Borrower’s track record of success with similar properties demonstrated their ability to execute their business plan.
https://www.gspartners.com/wp-admin/post.php?post=25642&action=edit#
- Rate: Fixed for 3 Years at 7.325%, then Floating
- Term: 5 Years
- Amortization: 1 Year Interest Only followed by 25-Year Amortization
- Prepay: 3, 2, 1, 0%
- LTV: 70%
- DCR: 1.25x at Stabilization
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