Transaction Overview
George Smith Partners successfully placed $15,300,000 in non-recourse bridge debt on an 83% leased (including a dark tenant that represents 5% of the space) 1990’s vintage Inland Empire multi-tenant retail property. The asset is shadow anchored by a regional grocer that that is not part of the collateral and does not report sales. The subject is anchored by a drug store with a lease expiring in June 2016 and a four month renewal notice period. As of the time of loan recordation, the drug store had not notified of their intent to renew or vacate. GSP identified a bridge lender willing to fund the loan despite uncertainty of the drug store’s renewal by emphasizing the tenant’s low occupancy cost, its long history at the center, and the depth of potential replacement tenants in the submarket. The 80% as-is leverage loan includes an $800,000 future funding for tenant improvements and leasing commissions as necessary to re-tenant the drug store and other spaces, with interest not paid on the unfunded proceeds until drawn.
