Transaction Overview
George Smith Partners arranged $16,380,000 in permanent financing for a newly stabilized, 7-story office building in the historic core of Downtown Los Angeles. The Sponsor purchased the Property in 2017 and completed a massive renovation to completely modernize the structure, façade, and interiors. The Sponsor leased 85% of the building prior to completing the renovation, including the ground-floor retail suite which is leased to a very high-end restaurant group. Some of the tenants are marijuana-related-businesses (“MRB’s”), meaning they service companies associated with marijuana, which made the financing challenging. GSP identified a recourse bank that was comfortable with the tenants and structured a five-year loan with an earn-out for additional leasing. The financing is fixed at an interest rate of 3.75% for the entirety of the loan term and will amortize over a 30-year period.
