77% of Purchase Price Financing for the Acquisition of a Vacant 75,000 Square Foot Data Center in Northern California

Rate: 8.80% Fixed (Blended)
Term: 12 Months
Amortization: Interest Only
Lender Fee: 1.33% (Blended)
Prepayment: Open Full Term
Guarantee: Non-Recourse (First), Recourse (Second)

Transaction Description:

GSP arranged $5,475,000 in financing, composed of $4,275,000 non-recourse first mortgage from a REIT and $1,200,000 recourse second mortgage from a private-money lender, to acquire a 1980’s-vintage, 100% vacant data center. The 77% of purchase price financing provides 12 months of term to allow the Sponsor to 1) implement capital improvements, and 2) generate positive cash flow, prior to putting permanent financing on the Property. The Lenders did not require an appraisal or other third-party reports, and required only a four-month interest/carry reserve despite no in-place cash flow. The financing is prepayable without penalty throughout the loan term.

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