Salt Lake City

George Smith Partners successfully placed the bridge loan to facilitate a refinance of a 221,145 square foot, 68% occupied Class B office building in Salt Lake City. The top-25% partial recourse loan carries a 36-month term with two, 12-month extensions. A 2% prepayment fee applies for months 1-12, and 1% for months 13-18, with no fee thereafter. The loan is priced at LIBOR plus 3.25%. There is no index or rate floor, approximating an all-in coupon today of 3.50% on an interest-only basis. Challenge: 28% of gross rents are collected from month-to-month tenants. Mid-process, the building’s largest tenant (both percentage of gross receivables and square footage) conveyed their intention to vacate the space. The relatively weak office market presented an additional challenge to loan funding. Solution: GSP identified a capital provider that focused on fostering a long-term relationship with a very experienced Borrower. GSP presented supporting data on the strength of the building’s location over its’ competitive set as well as the Sponsor’s proven recent track record, allowing the underwriter to move forward with the transaction as applied for.