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$4,900,000 Single Tenant Tertiary Market Office Refinance; Illinois

Rate: 3.625% fixed
Term: 10 Years
Amortization: 25 Years
LTV: 70%
DCR: 1.20
Loan Fee: 1 Point
Reserves: None
Impounds: None
Prepayment Penalty: None
Recourse: Repayment Guarantee

Transaction Description:

George Smith Partners placed the rate and term refinance of a net-leased single tenant office building located in a tertiary Illinois market. Constructed in 1999, the 88,000 square foot asset is used as a training facility and call center leased to an investment grade tenant. Although this Tenant has been in occupancy for over 20 years, only four years remain on their current lease term. Despite the pending lease event risk, there are no holdbacks or cash flow sweeps. The tenant recently completed a $5,000,000 cosmetic upgrade and continued to operate in a reduced capacity throughout COVID. Value and DCR constraints were not a concern as our Sponsor was not seeking a return of equity and only sought to replace the pending loan maturity debt. The 10-year term is fixed at 3.625% and amortizes over 25 years. This generated a much lower mortgage constant that substantially improves net cash flow after debt service.

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