Transaction Overview
Ameet Chagan placed the $4,400,000 refinance of a 22,480 square foot neighborhood retail center in Southern California. The rate was locked at application fixed for 7 years at 4.625% on a 25 year amortization. The mixed-use tenancy included a church as well as more traditional in-line tenants.
Challenge:The subject property’s largest tenant is a church on a month-to-month lease. Property owner lacked sufficient liquidity and net worth for most institutional capital providers. The Sponsor was rate sensitive and required a portfolio lender with flexibility in servicing the loan.
Solution: GSP identified a portfolio lender that understood the subject property’s market and potential reposition of the church space to retail use if the lease does not renew. GSP highlighted the superior historical cash flow of the asset and underscored the guarantor as a second generation owner; representing 30 years of sponsorship. By identifying a lending source whose rate is not directly tied to the U.S. Treasury, the borrower was unaffected by the rapid spike in Treasury rates just prior to application.
