Florida

GSP successfully placed the $12,200,000 senior loan for the acquisition of a Grocery-Anchored retail center in Orlando, Florida. The Sponsor was seeking maximum loan proceeds which were constrained by 75% of the purchase price. The non-recourse 10 year loan is fixed at 4.50% and offers three years of interest only before rolling to a 30 year amortization schedule for the remaining 7 year term. Challenge: While the center was 100% occupied when it was placed under contract, the subject lost two tenants during due diligence period. The grocery anchor tenant had declining sales for the previous three years. Solution: Despite the occupancy decrease during due diligence, the center still performed at market occupancy. GSP highlighted that over 60% of the tenants (by square footage) had been in occupancy for more than ten years and 34% had been in occupancy for over 20 years. Although the anchor posted declining sales, GSP documented that their sales per square foot were still within the operating norm of other grocery stores within the chain.