Transaction Overview
GSP successfully arranged the $35,000,000 permanent refinance of a northern California single-tenant office complex. The three-building collateral totals 137,232 square feet on 9.49 acre campus, all leased to a single AAA (S&P rated) tenant for an additional 14 years. One of the three buildings may be unilaterally vacated in 2018 at the tenants’ sole discretion. GSP mitigated this potential risk by structuring a cash flow sweep to address this one-time event. Fixed for 10 years, the non-recourse loan was sized to 70% of value and a 1.25 dcr constraint on a 30 year amortization schedule. The loan allowed the borrower to take out 130% of their original cash equity.
