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Acquisition Financing for NNN Jack in the Box, Texas

Rate: 5.375%
Term: 5 Years Fixed, 12 Year Term
Amortization: 30 Years
Guarantee: Recourse
Prepayment Penalty: 5,4,3,2,1
Lender Fees: None

Transaction Description:

George Smith Partners placed acquisition perm financing for the purchase of a single tenant, NNN-lease Jack in the Box in Texas. The Sponsor is a single asset entity, whose goal is to self-manage the NNN retail property. This Property was identified in a 1031 exchange. Jack in the Box has 12 years remaining on the lease, therefore George Smith Partners worked with the Lender on structuring a 12-year coterminous term. Due to the low leverage and other mitigating factors, GSP was successful in acquiring a 30-year amortization for the Sponsor along with a stepdown prepayment penalty. GSP also negotiated with the Lender to waive all fees.

Advisors

Related Financings

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    September 22, 2021

    Transaction Description:

    George Smith Partners secured $3,700,000 for an acquisition of a multifamily property in Oklahoma City, OK. The Sponsor had the opportunity to purchase a well-located, value-add property in Oklahoma City. By utilizing a quick close loan, the Sponsor was able to negotiate a below market price. The Sponsor approached GSP to help arrange a loan that needed to close on a strict timeline of only one week. Because of the quick timing and the short-term distress in the cash flow, the Property would not qualify for bank or agency financing. The Property rents were below market because the Seller self-managed and the Property needs exterior and interior improvements. The loan was structured with a CapEx holdback to allow the Sponsor to implement their value-add strategy. The non-recourse facility represents 75% of total cost and was priced at an interest-only fixed rate of 7.25% with a 12-month term plus two 6-month extension options. The interest-only loan allows for more property cash flow to be used towards improving the Property. Thanks to GSP’s long-standing relationship with this debt fund, we were able to close this transaction in less than 7 days from signing the term sheet.

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  • $4,680,000 Paper Lot Land Acquisition Loan in Ten Days; San Diego, CA

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    Transaction Description:
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    Transaction Description:

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  • $6,669,200 Acquisition Financing for 76-Unit Multifamily Portfolio, 3.30% For 5 Years,3 Years Interest Only; Portland, OR

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    Transaction Description:

    George Smith Partners secured $6,669,200 in proceeds for the acquisition of two properties comprising 76 units in Portland, OR. The loans are fixed at a rate of 3.30% for 5 years, with 3 years of interest-only payments. The loans are non-recourse and have no payment reserves.

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    Transaction Description:

    George Smith Partners successfully arranged a bridge acquisition financing for a single-tenant industrial building in Gardena, CA. The Property is 9,300 SF on an approximate 18,731 SF parcel. The previous owner occupied the space, and the building is now vacant. There was an existing environmental issue that limited the pool of interested capital providers. However, GSP leveraged its market expertise and relationships to identify a lender comfortable with the Property and Sponsor, who is a repeat client. GSP secured a 12-month, non-recourse bridge loan at 7.90% fixed with interest-only payments and no prepayment penalty. This will provide the Sponsor time to resolve the environmental issue, lease the Property and season it for permanent financing. The financing closed within 12 days of term sheet issuance.

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    Transaction Description:

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