$9,300,000 Refinance of a Northern California Independent Grocer Anchored Retail Center

George Smith Partners successfully placed $9,300,000 of non-recourse, first mortgage debt to refinance a 70,000 square foot Bay Area multi-tenant retail property anchored by an independent grocer whose lease is backed by a large wholesale grocery cooperative. The property has a stable occupancy rate below 90% due to approximately 4,600 square feet of static vacancy. In order to maintain leverage despite the reduced income resulting from the static vacancy,  George Smith Partners sourced a lender comfortable with a debt yield hurdle below 8% and a 1.20x debt service coverage threshold. The 70% leverage, non-recourse loan has a 4.25% fixed coupon and the 10-year term is interest only for the first four years with a 30-year amortization schedule thereafter.