Transaction Overview
George Smith Partners successfully placed a high leverage non-recourse acquisition/bridge loan for a 78% leased multitenant industrial business park in the Pacific Southwest. This loan provides the Sponsor $2,450,000 for capital expenditures, tenant improvement and leasing commissions to cosmetically rehabilitate and stabilize the asset. Sized to 89% of the total capitalization, $23,050,000 of the on-book financing included mezzanine financing of $5,900,000. The loan will float at LIBOR + 6.00%, until the mezzanine tranche is repaid. The mezzanine loan is pre-payable at any time without penalty. Once the mezzanine loan is repaid, the rate is reduced to LIBOR + 4.25%. Interest only for three years, this loan offers two, 1-year options.
