Raffi Sarkissian and Manuk Boyajian facilitated the acquisition funding of the 186,700 square foot owner/user industrial building under the SBA 504 program. The 90% of purchase loan is fixed for the full term and self-liquidates over 25 years. Under the 504 guidelines, a local bank funded a 50% senior position fixed for 25 years while the SBA funded 40% of the total capital stack also fixed but self-amortized over 20 years. The loan is full recourse to all borrowers and related entities.
Challenge: The Borrowers are a consortium of California entities with respective individual members and owners that added volatility to the underwriting process. Having multiple guarantors increased the requirements of the financial documents increasing the complexity for our underwriter. Transactions of this size are rare for the SBA and invited their own host of challenges.
Solution: GSP worked diligently with the SBA in ensuring the underwriting and processing was completed in a timely manner and met all deadlines for escrow contingencies. GSP was able to secure special exemptions from the SBA with regard to loan size and Borrower structure for this acquisition.
