Transaction Overview
George Smith Partners successfully secured $4,000,000 in permanent financing for a mixed-use retail and office property in the heart of Old Town Temecula, California. The recently constructed 16,046 square foot property was recently leased to two restaurant tenants and one office tenant. Loan proceeds were used to retire existing, maturing construction debt and provide cash out for the Sponsor. The sub-4% fixed-rate loan is prepayable at any time without penalty.
The Deal presented several challenges. While the ground floor restaurant had technically been in place for several months, it had limited operating history due to Covid 19 restrictions prohibiting indoor dining. The second-floor restaurant, a locally owned start up concept, opened their doors after loan closing and had no operating history.
GSP was able to source a lender who understood the strength of the Downtown Temecula market and was able to get comfortable with the product type and lack of operating history.
