Transaction Overview
GSP arranged the $18,037,500 non-recourse first mortgage from a regional commercial bank on the acquisition of an 114,471 square foot, 1940’s San Gabriel Valley medical office building. The loan allows the opportunity for the Sponsor to redevelop an approximately one-acre surface parking lot at a future date. GSP sourced a lender who was comfortable with the numerous month-to-month tenants in the mid-century vintage, masonry construction building. The subject is not adjacent to a complimentary hospital system. Sized to 65% of purchase price, the first mortgage priced at one-month LIBOR plus 2.65% (2.90% all-in today with a 25 basis point floor) and required a LIBOR cap with a 3.00% strike price for the first two years of the term. The LIBOR cap renewal structured for the third year reduced the cap cost to Borrower by shortening the cap’s duration. Interest only for the first 12 months, the 3 year term amortizes over 25 years for the remaining loan term.
