Transaction Overview
GSP arranged the 65% of cost for land and “horizontal development” loan for a new big box single tenant retailer. The site is a 8.38 acre parcel adjacent to a 500,000 + s.f. retail center also owned by the client. The center (not part of our collateral) includes a 50,000 s.f. grocery store, movie theater, high end chain restaurants within a contemporary outdoor setting. The investment grade tenant has signed 30 year ground lease with extensions and will be building their own store. The lease requires the Sponsor to deliver a construction ready “clean dry pad” to tenant for their building construction. Our Client demolished a functionally obsolete, freestanding 200,000 s.f. building that had been vacated by a failed retailer, then added utilities and raised the pad using pilings to create the proper foundation for the new store. The construction loan was uncovered at funding although the Borrower has since forward rate-locked a permanent take-out loan scheduled to close 2Q 2012. This was GSP’s 11th financing for the client.
