Transaction Overview
George Smith Partners placed the non-recourse refinance of two vacant West Los Angeles creative office buildings. The contiguous buildings may be operated independently or as a small single-tenant user campus. The Sponsor was facing loan maturity but is still six months from pulling permits to reposition the assets to maximize their effective utility. These assets have been family held for multiple generations and appreciated significantly due to their ideal in-fill location adjacent to several major transportation corridors and metro line. A return of equity was requested given their low basis. No hold-back or reserve was structured despite the lack of cash flow in place at the time of funding. Fixed for twelve months at 6.90%, the non-recourse loan is interest only and does not carry a prepayment penalty.
