California

Jason Gaffner successfully arranged the refinance of a recently purchased Upland, California office building. The asset was acquired 8 months ago while only 30% occupied. Our Client used high-yield private funds at 11% to acquire the asset and close escrow. After purchasing the asset, the Sponsor renovated the main lobby and restrooms. A marketing campaign brought occupancy up to 89% although a lack of seasoning precluded the Borrower from securing long-term fixed rate debt. Floating at WSJ Prime + 1.0%, the debt service was reduced by just under $9,000 per month after allowing for the 25 year amortization versus the interest-only private money acquisition financing. There is no prepayment penalty during this five year loan term.