Transaction Overview
GSP successfully placed $17,925,000 in non-recourse, floating-rate bridge debt on a 62%-occupied, 1960’s vintage, Sacramento-area multi-tenant retail property. Over 55% of loan proceeds were future funded due to significant repositioning of the property, which includes the construction of new retail pads and re-tenanting of a former Kmart suite with two national discount tenants. GSP identified a lender that provided a 75% loan-to-cost bridge loan including a significant earn-out upon stabilization and accepted an entity as carve-out guarantor in lieu of a warm body. The lender structured an interest reserve due to below breakeven going-in cash flow.
The loan priced at 30-Day LIBOR plus 5.15%. Interest is not paid on the unfunded proceeds until drawn.
