Transaction Overview
George Smith Partners successfully placed $14,000,000 of non-recourse debt on the fully leased in-line component of a 1980’s vintage Inland Empire multi-tenant retail property, shadow anchored by a national grocer and specialty grocer. Although not part of the collateral, neither anchor reports sales while the specialty grocer has a lease expiring in 2019.
Challenge: Our Sponsor required flexibility to use loan proceeds for purposes unrelated to the collateral on an as-needed basis. The Sponsor requested the capacity to pay interest on the funds only once utilized and did not want a prepayment penalty once the funds were returned to the lender.
Solution: The Lender structured a 65% total leveraged loan as a $10,000,000 fixed rate facility funded at closing to take out the existing debt on the property. The remaining $4,000,000 in proceeds is structured as a revolving line of credit. The entire loan is structured as a three year initial term with one four year extension option.
