California

Steve Bram, David R. Pascale, Paul Monsen successfully placed the $23,000,000 bridge loan for the 238,000 square foot shopping center and 67,000 square foot office building in Inglewood, California. The early 1960s vintage property is on a 17 acre parcel on a major intersection with a traffic count over 60,000 cars per day. Underwritten to a 7.25% debt yield on in place income, this non-recourse loan pays off an existing term loan at maturity and will fund $4,000,0000 in renovations, tenant improvements, leasing commissions and other capital expenditures to reposition both the office and retail. The retail portion includes 4 value oriented chains and several local businesses. The reposition of the retail has already attracted new national tenants including restaurants. The office building will be renovated to feature street level retail. Upper floors are a mixture of a major tenant occupying two full floors and several local businesses. Several office tenants are month to month, but the building has strong occupancy history. Originally executed in the late 1950s, the ground lease was recently restated and extended. Interestingly one of the tenants ground leases a stand-alone restaurant pad from the Sponsor. The two-year interest only loan floats over the 30 day LIBOR floored at 5.15%, with a LIBOR cap. The loan has three – 12 month extension periods for an additional fee.