Transaction Description:
George Smith Partners arranged permanent 7-year non-recourse financing for a 98% occupied multi-tenant shopping center in the Inland Empire. The property is a neighborhood center with 20 tenants and shadow-anchored by a major grocery chain with a long history at the center. Other tenants include a mix of local and national chain restaurants, dental, and hair care. The Sponsor was able to execute new financing near their existing loan maturity and fixed rate at application to minimize interest rate risk. The Sponsor recently re-tenanted a vacant CVS junior anchor space on a short-term lease to a local operator, which allows the Sponsor time to decide the future of the center. The Sponsor chose a 7-year structure in order to allow flexibility in the next 3 or 4 years (minimizing prepayment costs). The life-company financing allowed for a fixed rate, non-recourse refinance in a volatile capital markets environment.
