Rate: 5.14% Fixed
Amortization: 30 Years
Term: 7 Years
George Smith Partners successfully advised on the placement of a $1,850,000 cash-out refinance of a 72,471 SF commercial condominium comprising 4-levels of public parking and storage facility located within a 38-story residential high-rise in downtown Los Angeles. Although the property is stabilized, lenders expressed concerns over the condominium collateral, special-purpose, and negative cash flow history during COVID.
GSP was able to get a Lender comfortable with the sustainability of the net operating income vis-a-vie the Borrower’s ownership and near-stabilization of its 3-levels of commercial, retail, and office space located within the same project. The Sponsor’s primary objective was to refinance and lower their cost of capital which was previously at 9%. GSP was able to successfully replace the loan with a non-recourse bank loan at 5.14% fixed in addition to providing $350,000 in cash-out proceeds. The rate was locked at the beginning stages of the upward trend in interest rates and GSP was able to get the bank to accommodate an additional rate lock extension.
- No related financings.