California

George Smith Partners successfully placed the $2,000,000 cash-out refinance of a single tenant industrial building in Pasadena, California. Occupied as an owner/user since 1998, our Sponsor was able to recoup $600,000 of his equity in addition to lowering his interest rate. Fixed at 4.0% for 7 years, the loan appraised to 28% of value and is amortized over a 20 year schedule. Challenge: Our Sponsor had ongoing litigation with the adjacent land owner over the addition of a fence. Lenders were concerned that the pending litigation could challenge title to the parcel and initially would not consider this request until this situation was resolved. Solution: GSP’s demonstrated that the value of the collateral would not be impacted should our Client not prevail in court. The favorable valuation (28% LTV) and heavy 20 year amortization provided additional comfort in securing new financing prior to this legal situation being resolved. This transaction funded prior to settlement without the requirement for additional collateral or reserves.