Transaction Overview
George Smith Partners successfully arranged $3,037,500 in a cash-out permanent refinance secured by an unanchored shopping center located in a tertiary market in Florissant, Missouri. The Property consists of 14 tenants, with a total rentable area of 133,330 SF.
The Property was 95% occupied at closing, but all of the leases will roll within the first four years of the loan term. In addition, the buildings were constructed in 1964, and sizable improvements have not been made since then.
GSP identified a capital provider who was comfortable offering a 5 year fixed rate loan instead of a short-term bridge loan, and able to size it at 75% of value and 1.25x Debt Service Covenant. The loan was structured with no holdback, upfront or on-going Tenant Improvements/Leasing Commission. Considering GSP’s strong relationship with the Lender and Sponsor’s sturdy track record, GSP negotiated a 120 day free rate lock while interest rates are pushing higher. The 75% leverage recourse loan has a fixed interest rate of 4.875% for 5 years, with a 25 year amortization.
