78% LTC Acquisition of Shadow Anchored Retail Center in a Tertiary Market

Transaction Description:  Loren Bedolla successfully structured the 78% loan-to-cost purchase of in-line retail space, shadow-anchored by a regional dry-goods store. Located in a tertiary Indiana market, the collateral was 81% occupied by a mix of national, regional, and local tenants. Fixed at 4.75% for five years, the loan is amortized over 20 years.

Challenge: The property’s MSA consisted of a population of less than 10,000 residents in an area of Indiana that struggled significantly during the recession. The Borrower is an out-of-state investor, with no other commercial assets in this market.

Solution: GSP identified a regional capital provider knowledgeable about this location and was comfortable with the investor’s financial strength, retail experience and business plan. GSP vetted the risk exposure in advance with the lender and worked to structure objective criteria to satisfy both the Borrower and lender prior to the execution of the application, resulting in a highly leveraged and reasonably priced acquisition loan.