Transaction Overview
GSP arranged CTL bond financing for a newly constructed Lowe’s Store and Garden Center. The Borrower owns the fee and leased it to Lowe’s on a 20 year ground-lease. The Borrower redeveloped a large, functionally obsolescent, 1960’s vintage, retail center to accommodate the new Lowe’s as well as reposition 21,000 s.f. of in-line retail space. Most structures were razed as several tenants were relocated to new locations. A 10.65 acre site was cleared for Lowe’s, who then built their own 120,000 s.f. store with a 31,000 s.f. garden center. GSP previously arranged the construction financing in November 2010 which financed the demolition, pad construction and pad preparation. This permanent financing was arranged through an investment bank specializing in bond placements for large institutional investors in order to maximize loan proceeds. The lease’s bond structure and the tenant’s strong credit allowed the investment bank to underwrite to a 1.01 DCR. This was the 18th financing arranged by GSP for this client.
