$5,600,000 Cash-Out Refinance for a 28,000 Square Foot Unanchored Retail Center

Transaction Description:   Shahin Yazdi successfully placed the $5,600,000 refinance of a 95% leased retail center near the Port of Los Angeles. The ten year term is fixed for five years at 3.975%, before resetting at the 5-Year Seattle FHLB Rate + 1.95%, and amortizes over 30 years.

Challenge: The property presented a series of challenges, including all leases rolling over within four years and a lack of credit tenants. The out-of-state Sponsor requested no reserves, and had no other retail assets to demonstrate retail experience.

Solution: GSP demonstrated that the average tenant had been in place for over ten years, mitigating the Lender’s concerns regarding rollover and tenant credit to the point that Lender willingly waived their reserve requirement. The Sponsor’s length of ownership and use of a local management company alleviated Lender concern over Sponsor’s inexperience and out-of-state location.