$8,100,000 Non-Recourse Permanent Financing for Secondary Market Shadow Anchored Retail with Rollover Risk

Transaction Description: George Smith Partners successfully placed $8,100,000 in ten year fixed rate first mortgage financing on three big-box retail spaces occupied by national retailers in a secondary California Walmart shadow-anchored retail center. Constructed in 2015, all three tenants executed ten year lease terms, creating rollover event risk during the new loan term. George Smith Partners identified a national institutional lender able to provide a ten-year loan term despite not having historical sales. To mitigate the tenant rollover concentration at loan maturity, the transaction is structured with a cash flow sweep 12 months prior to two of the three tenants’ lease maturities. Sized to 68% of appraised value, the transaction includes five years of Interest Only payments prior to converting to a 30-year amortization schedule. This non-recourse loan carries a 4.54% fixed coupon.