$5,200,000 Acquisition Loan for Auto Dealership Conversion

Transaction Description:  GSP successfully placed the $5,200,000 acquisition/reposition loan for the conversion of a former auto dealership into a retail center. The future multi-tenant retail property loan provided 67% of the purchase price with an additional commitment of $500,000 for “Good News” dollars upon the execution of leases.

Challenge: The site had environmental issues from the repair shop at the former dealership. The Sponsor required non-recourse for a quick-close loan as the purchase option contract had expired.

Solution: GSP identified a lender that understood the location’s potential, becoming comfortable providing capital with no leases in hand from retailers, only letters of intent. The lenders’ environmental engineer quickly analyzed the Phase I & Phase II reports and concluded the remediation plan and costs were well founded. The loan was funded without a valid purchase and sale agreement and was able to close in less than two weeks. Tenant improvements will be lender funded up to $500,000 with signed leases.