GSP successfully secured acquisition debt for the purchase of a Tarzana Carwash and adjacent popular hotdog stand. The property is well located on a major thoroughfare of the Valley and is minutes from Highway 101. The 75% of purchase fixed rate loan will self-liquidate over 25 years but is open for prepayment without penalty beginning in Year 4.
Challenge: There was very little historical information provided by the seller making the loan difficult to underwrite or value the asset from an income approach. The buyer had already removed all contingencies to the purchase and needed to close on a date certain or lose a substantial earnest deposit.
Solution: GSP carefully selected a lender with a high probability to fund based on their track record with similar difficult transactions. The deal team worked with the Borrower to create a realistic proforma that the lender accepted based on information from other car wash operations and knowledge of this market.
