$5,300,000 Retail Refinance – Closed in Five Days

Transaction Description: The Sponsor initiated a major capital improvement project to convert his dated beach-side retail center into a boutique destination entertainment center with outdoor seating and high-end restaurants. His original plan of investing $3,000,000 for upgrades was funded with traditional bank construction debt. Increased construction costs and the addition of several new tenants requiring build-outs resulted in a $2,000,000 cost over-run. With 85% of the work complete, an additional construction delay to re-underwrite would jeopardize the new tenant occupancy with the coming summer beach season, necessitating an immediate funding.

George Smith Partners identified a private lending relationship that was comfortable funding into a broken title priority and provided an additional $2,300,000 beyond the existing bank debt to complete the construction. Funding occurred five days from introduction. Sized to 65% of the as-is value- there was very limited cash-flow at the time of funding, the completed value upon stabilization will exceed $14,000,000. Priced at 7.9% for one year, the interest only loan does not have an exit fee or prepayment penalty.