Transaction Overview
GSP arranged the 90% of purchase acquisition financing for a San Fernando, California office asset. The Borrower had been operating as a tenant from this location and exercised his option to purchase. Despite the high loan to purchase price, the monthly debt service plus tax & insurance impounds is lower than the market rental rate. With an increasing operational market share, the client did not wish to risk rising rental rates or the relocation exposure upon lease expiration. The rate is fixed at 4.925% and self-liquidates over the term of the loan.
