GSP successfully placed the short term acquisition financing on a multi-tenant industrial facility with excess land in Azusa, California. The 3.2 acre site is leased to two tenants; a nationwide electrical contractor and commercial fleet fueling facility. Tenant leases are set to expire one year before loan maturity. The 5.0% fixed rate term is amortized over 25 years and has a step-down prepayment.
Challenge: Capital providers are typically un-comfortable with a fueling facility on site. The short term remaining on both leases exposes the loan to 100% vacancy just prior to loan expiration. The Sponsorship has a foreign citizen as a controlling member that many lenders look for a repayment guarantee.
Solution: GSP identified a local portfolio lender who understood the property use and focused on the quality of the real estate first, and the repayment guarantor strictly as an alternative to the cash flow. Our lender did not require the foreign citizen to guarantee the loan and became comfortable with the asset use (fueling facility) with a clean Phase I.
