Transaction Description:
George Smith Partners arranged 3 separate loans with a single portfolio lender for our Sponsor’s acquisition of 3 drug stores from 3 different sellers. Timing was critical as 2 of the Property acquisitions were part of a 1031 exchange nearing the deadline. The fixed rate financing with no prepayment gives the Sponsor maximum optionality with no rate risk. The Sun City Seller had to delay closing due to a defeasance issue. This resulted in a mid-process strategy shift. That property was removed from the exchange and the Omaha property was added to the exchange. GSP worked with the Lender and all counsels to have those 2 loans re-documented with new ownership structures to accommodate the exchange.
CVS – Sun City, AZ
20-year lease term
Loan Amount: $2,372,500
Rate: 3.29%
Term: 10 years, rate adjusts after year 5
Amort: 30 years
LTV: 67%
Prepayment: Prepayable anytime at par
Guaranty: Recourse
Lender Fee: 0.25%
Walgreens – Omaha, NB
15-year lease term
Loan Amount: $4,410,000
Rate: 3.74%
Term: 10 years fixed
Amort: 30 years
LTV: 67%
Prepayment: Prepayable anytime at par
Guaranty: Recourse
Lender Fee: 0.25%
CVS – Davenport, IA
12-year lease term
Loan Amount: $2,563,000
Rate: 3.29%
Term: 10 years, rate adjusts after year 5
Amort: 30 years
LTV: 67%
Prepayment: Prepayable anytime at par
Lender Fee: 0.25%
