Shahin Yazdi placed the 65% of purchase debt for a single tenant restaurant in Pasadena, California. The purchaser is not an operator but an investor seeking to leverage their return with a low cost of fixed rate debt. The seven year term is fixed for five years a 4.50% and amortizes over 25 years. Proceeds were maximized to a 1.20 debt coverage ratio on actual leased income.
Challenge: The borrower’s global debt to income cash flow fell below most lender guidelines. The tenant showed a loss from operations the last two years.
Solution:GSP focused on borrower’s significant liquidity as well as the income generated from the subject property. The tenant provided a supportable projected income model that will return operations to profitability.
