$5,000,000 Strip-Retail Cash-Out Refinance

Transaction Description: George Smith Partners successfully placed the refinance of a 25,000 square foot strip-retail property in Valencia, California. Title is held under a Tenants-In-Common (TIC) ownership structure with three separate Sponsors who acquired the asset only six months earlier from a seller who had mismanaged the property. Since acquisition, our clients increased monthly revenue by 25% with the addition of four new tenants. On-going deferred maintenance was also addressed, resulting in a more attractive asset for both tenants and shoppers. GSP identified a capital advisor who recognized the value to the considerable reposition and funded a partial return of equity in addition to providing very competitive fixed-rate financing. Fixed at 3.52% for seven years, the recourse loan will roll into a six-month floater at 2.35% over the corresponding LIBOR for the remainder of the 10 year term. Prepayment steps down from 5% with the last three years open to prepayment without penalty.