Industrial

George Smith Partners successfully placed a high leverage non-recourse acquisition bridge loan for two multi-tenant industrial business parks. The bridge loan provides the Sponsor three years to execute a business plan that consists of repositioning, renovating and leasing the properties. At acquisition, the properties were 78% and 74% occupied, respectively. $20,200,000 of the on-book financing was funded at closing with the remaining $3,300,000 to be future funded to cover 100% of CapEx, tenant improvements and leasing commissions, eliminating the need for the Sponsor to contribute additional future equity. Interest will not be paid on future funding until disbursement. Although cross-collateralized at loan closing, the assets can be uncrossed at par upon achieving stable debt yield and loan-to-value hurdles. Floating at L+4.50% for three years on an interest only basis, the loan carries two (2) one-year extensions. A two-year cap was purchased at closing with a required renewal in the third year.