- Term: 10 years
- Rate: Fixed for 5 years at 4.28%, followed by floating at 6 month LIBOR plus 2.35%
- Amortization: 30 years
- Prepayment Penalty: 5,4,3,2,1
- LTV: 65% maximum
- DCR: 1.45
- Origination Fees: Par
Transaction Description:
George Smith Partners secured $4,950,000 for the refinance of a 20,020 square foot retail strip center located in Los Angeles, California. The Sponsor requested a rate and term refinance and was not interested in maximizing leverage. Accordingly, GSP was able to source a Lender known to compete aggressively on rate for lower leverage deals. Additionally, the property had two units located in a high-visibility corner pad, while the remaining units were inline strip space. The corner pad was leased at rates considerably higher than the inline space. Although it was challenging for the Lender and appraiser to support the higher rents of the corner pad, GSP provided extensive rent comparable data for freestanding pads in the submarket. Underwritten cash flow and property value were well supported and the Lender maintained originally quoted proceeds. Loan is fixed at 4.28% for 5 years, then floats at 6 month LIBOR plus 2.35%.
Advisors
