Transaction Overview
GSP successfully placed the $12,700,000 pre-development loan on a full city block in downtown San Diego. While currently operated as a leased in-line retail center, the property will consist of 700 residential units and 60,000 square feet of anchored retail upon build-out and re-stabilization. While the site is extremely well located, the property does not have final entitlements in place although the downtown master EIR allows for the modeled business plan. Comparable land sales sized the loan to 60% of “As-Is” value for this Class C retail asset. The in-place 0.62 debt coverage ratio required the need for a large interest reserve. The interest only loan is priced at 6.5% for two years and carries a one year extension.
