Transaction Overview
GSP arranged a Forward Commitment for the retail pads and in-line stores of a Lowe’s shadow anchored center in a Southern California coastal city. The borrower redeveloped a large, functionally obsolescent, 1960’s vintage, retail center. He razed most of the structures, then building ground-up, added Lowe’s and new in-line retail square footage. The Borrower requested a permanent loan with a 6-month forward rate-lock, fearing that rates would increase during his construction phase. Although all leases were fully executed, none of the tenants (including Lowe’s) were operating at the time of the rate-lock. The lender locked rate in July 2011 and recently funded the loan although not all tenants were in occupancy. There was no premium add-on for the 6 month forward. The collateral consists of 21,000 s.f. including a fast food restaurant and an auto-parts store, both on their own pads. Several tenants changed location within the center to accommodate the new design.
