$5,900,000 Cash-Out Financing for Office Building with Short Term Lease, Pasadena, CA

Transaction Description: George Smith Partners arranged $5,900,000 of cash-out refinancing for a 21,220 SF office property occupied by a non-profit tenant in Pasadena, CA. The Property is 100% leased to a non-profit tenant with 4.5 years of remaining on the lease term. The challenge was finding a 5 year loan term option despite the short term nature of the lease.

GSP was able to exceed the Sponsors expectation with respect to cash-out proceeds which were based on 70% “as is” LTV. The 5-year floating-rate execution is partial-recourse and amortizes over 25 years with a partial cash flow sweep while still providing net cash flow to the Borrower. The floating rate was 370 bps over the 30 day Libor.

  • Rate: 6.20%
  • Term: 3 year term with two 1-year extension options and 33 bps extension fee contingent upon min 1.20 DSCR, max LTV of 65%
  • Amortization: 25 years
  • Loan to Value: 70% max LTV “as is”, 65% LTV at each extension
  • Yield Maintenance: 24 months
  • Guaranty: Partial-Recourse, 25% of the loan amount

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