Transaction Description:
George Smith Partners arranged $9,000,000 in bridge financing to refinance a single-tenant office property in the Inland Empire. The Property has been nearly 100% leased to a county entity for 20 years, with lease renewals every 5-7 years. The Sponsor is leaving the unused space vacant in order to attract a single-tenant government lease buyer. GSP had arranged CMBS financing on the property in 2012 that came due in late 2022. Due to the timing in getting a new lease executed, the Sponsor asked for and received a short extension from the lender/servicer. GSP sourced a bridge lender that was poised to fund upon execution of the lease and estoppel. The loan paid off the existing loan and provided funds for tenant improvements mandated in the lease extension. It also gives the Sponsor maximum flexibility to sell or refinance over the next 2 years.
- Rate: 10.50% Fixed for Year 1, then Floating over SOFR for Year 2
- LTV: 65%
- Term: 10 Years
- Amortization: Interest Only
- Yield Maintenance: 6 Months Minimum Interest, then Open
- Origination Fee: 1%
- Prepayment: Open
- Guaranty: Non-Recourse
