Bridge Financing for Office/Industrial Asset; Los Angeles, CA

September 2022

Transaction Description:

George Smith Partners arranged $3,600,000 in bridge financing of a 30,000 SF office/industrial Property located in Downtown Los Angeles. When the Sponsor engaged GSP, the Sponsor was in the midst of repositioning the Asset from a multi-tenant investment property into a full owner-user use. Because the previous lender did not allow for the reposition, GSP quickly arranged a multi-phase refinance process.

The first phase was to take out the existing Lender by securing a $3,600,000 non-recourse bridge loan in just 7 days to avoid a technical default with the previous lender. This bridge loan was secured at 6.50% interest only on a two-year term, and a 1.00% origination fee. In today’s market, bridge loans of this nature usually start at 8.00% -10.00% interest rates with more expensive origination fees, but GSP was able to leverage its relationships to secure a more affordable option for their client. The loan has no prepayment penalty or exit fee.

The second phase of this financing that is set to close in 60-90 days will be a long-term SBA loan which will net the Borrower over $5,000,000 of cash-out at a below market rate with 3 years of interest only on a 10 year term. GSP was able to handle the Borrower’s financing needs smoothly and quickly, allowing the Borrower to focus on expanding their business and take over their asset as an owner-user.

  • Rate: 6.50% Fixed, Interest Only
  • Term: 24 Months
  • LTV: 55%
  • Prepayment: No Prepayment
  • Closing Timeline: 7 Calendar Days

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