$6,800,000 Cash-Out, Permanent Financing of an Inland Empire Retail Center; 85% of Collateral Rolls During the Loan Term

Transaction Description: George Smith Partners successfully placed the $6,800,000 10-year fixed-rate, cash-out refinance of an Inland Empire multi-tenant retail property anchored by a national office supply retailer and a national specialty music store. 85% of property income is derived from two tenants, who do not report sales, and whose leases expire in 2020: during the 10 year term of the loan. GSP identified a lender comfortable with the concentrated rollover risk by mitigating it with a springing cash flow sweep structure as opposed to collecting upfront reserves. This structure, in addition to five years of interest only payments, maximized cash flow for the Sponsor. The non-recourse loan has a 4.71% fixed coupon for the 10-year term.