- Rate: 4.55%
- Term: 5 Years
- Amort: 30 Years
- LTV: 73%
- Prepayment: None
- Recourse
- Lender Fee: Par
Transaction Description: George Smith Partners successfully placed the 73% LTV refinance of a 17,000 square foot flex industrial building located in Bakersfield, California. Our Sponsor had recently acquired the asset utilizing seller carry-back financing to close in a timely manner. The subject property suffered from deferred maintenance and an easement encroachment/title issue relating to the previous owner. The current tenant lease was expiring and had not confirmed if they would vacate or roll. The new owner requested a capital fund to address the deferred maintenance issues and return a portion of his acquisition down payment. GSP identified a capital provider who became comfortable with our Sponsors’ business plan, financial strength and the market metrics. The lender also provided a waiver on loan proceeds based on actual value rather than the recent acquisition price. Fixed at 4.55% for five years, the recourse loan does not carry a pre-payment penalty.