Retail

George Smith Partners successfully placed $14,400,000 in acquisition and reposition financing to acquire a 30,400 square foot West Los Angeles office building currently occupied by a single tenant with rolling annual termination options. Our Sponsor’s business plan assumes the current tenant will exercise one of their annual termination options; allowing for a building renovation and conversion to a multi-tenant creative office building with ground floor retail. The tenant, through extensions, may choose to continue to occupy this location and is not obligated to vacate during the initial 3½ year loan term. George Smith Partners sourced a flexible lender comfortable executing on the transaction regardless of the tenant’s occupancy status. Sized to 65% of total project cost, this financing is priced at 2.95% over one-month LIBOR despite the potential for zero cash flow should the tenant choose to vacate. Our Capital Provider underwrote and will fund 100% of creative office conversion and re-tenanting costs. Interest is not paid on this additional $4,400,000 funding until drawn.