California

GSP arranged the no-cash-out refinance for a 45,000 SF stabilized grocery anchored retail building in Westwood, California.  The property, owned and managed since 1997, includes a restaurant, single-screen theatre and two public parking structures. The non-recourse loan amortizes over 30 years, and is fixed for 20 years at 5.20%. Challenge: Parking revenue contributes 17% to the Gross Income.  This disproportionate amount of parking revenue, in conjunction with the single-screen theatre component added a complex dynamic for long-term capital providers who are accustomed to more traditional Grocery/Drug centers.  Valuation also came into question given the special uses of the collateral.  The Borrower also required a lengthy fixed rate term with ample amortization. Solution: GSP identified a portfolio lender who understands the strength and in-fill dynamics of Westwood Village, and its significant parking constraints.  Full credit for the parking and theatre revenue was underwritten to offer a 1.60 DCR to the capital provider.  GSP worked closely with the appraiser to provide sufficient parking income comparables in support of a 55% LTV, and negotiated a 20-year fixed term with the Lender.