Florida

GSP successfully placed the cash-out refinance of an operating marina and boat repair yard in Fort Lauderdale, Florida. The property is half owned in fee, half owned in leasehold with the local municipality. The non-recourse loan will be amortized over 18 years to allow for a 10 year hang-out from the ground lease. Pricing was SWAPs plus 350 for the fixed 10-year term. Challenge: The unique product type is widely viewed as an operating company cloaked in real estate, not unlike a hotel. Institutional lenders are familiar with hospitality whereas few have first-hand experience with an operating marina. Solution: GSP blanketed the permanent debt market and identified a CMBS Lender who understood and appreciated the property and its long-term, stable historical performance. This is one transaction where the asset truly sold itself. Once the Lender “kicked the tires”, decision makers immediately fell in love with the asset and the operations. The unique property type was mitigated with the operational strength of the sponsor and lengthy ownership history. Ten years of monthly historical cash flow was underwritten demonstrating consistent collections throughout the economic down-turn. GSP successfully closed with the Lender in 32 days.