- Rate: 4.75% & 5.25%
- Term: 3 Years & 1 Year
- Amort: 25 Years & IO
- LTV: 60%
- LTC: 50% including all TI reserves
- DCR: 1.29 & N/A
- Prepayment: 3,2,1 & none
- Recourse
- Lender Fee: 0.875%
Transaction Description: GSP successfully arranged the cash out refinance of a 7,300 square foot conventional office building and the simultaneous acquisition loan for a 6,400 square foot adjacent vacant creative office/retail building. No new cash equity was required for either transaction. The cash out loan was limited to 60% of value and is fixed for 3 years at 4.75%, amortized over 25 years. The acquisition loan is fixed for 1 year at 5.25% and is interest only without prepayment penalty. The acquisition loan also included TI and LC’s for the vacant office/retail building. The two loans were funded concurrently and are not cross-collateralized.
Challenge:The Client requested 100% of capitalization for the purchase of a vacant retail building including all financing and improvement costs.
Solution:GSP arranged for the 50% of total cost on the vacant retail asset inclusive of all reserves and financing fees. All of the cash equity required for the purchase was supplied by the adjacent office building that contains the client’s corporate offices. These two separate loans provided sufficient cash for the purchase of the new building and carry of the existing performing asset.
