$9,600,000 Non-Recourse Acquisition Financing for a Two Tenant Non-Investment Grade Wisconsin Retail Property

George Smith Partners successfully placed $9,600,000 in permanent acquisition financing on a former Kmart building newly demised into two retail spaces and leased to a regional sporting goods store and national crafts store. The non-investment grade tenants recently signed 10 and 14 year leases and had no sales history at the property prior to close. George Smith Partners identified a national lender whose familiarity with the regional tenant and affluent suburban Milwaukee location allowed them to structure the transaction aggressively. The structure includes five years of Interest Only payments to maximize Sponsor cash flow and amortizes over 30 years for the balance of the 10 year term. A 12-month cash flow sweep prior to tenant lease expiration mitigates rollover risk at loan maturity without compromising on leverage or maintaining a significant ongoing reserve. The 70% leverage loan has a fixed rate coupon of 4.21% for the 10-year term.