Missouri

George Smith Partners successfully placed the senior debt refinance of a standalone Walgreens in St. Joseph, Missouri. The Property consists of a single 14,550 square foot structure and is one of three Walgreens serving St. Joseph, a city of 76,000 residents; 55 miles north of Kansas City. This recordation occurred prior to the Walgreens/Rite Aid acquisition announcement. Fixed for 10 years at 4.56%, this non-recourse loan was sized to 65% of appraised value and amortizes over 25 years. Challenge: Our Sponsor purchased the Subject in 2005 with 10-year full-term interest-only financing, enjoying strong cash flow since acquisition, and sought to maintain his ample cash flow post refinance. Tenant unit sales declined due to competing Walgreens in the St. Joseph market. Solution: GSP reached out to Walgreens and learned that a new management team had recently been installed, with an immediate impact on store performance. A GSP coordinated lender visit conveyed the market growth and a narrative that led to a favorable outcome. The Sponsor secured 10-year non-recourse financing fixed at 4.56%, amortized over 25 years that allowed the retention of approximately 65% of cash flow compared to the previous interest-only structure.