Retail

Bryan Shaffer successfully placed the bridge-debt refinance of a distressed retail strip center that was only 60% occupied at funding. The new loan replaced a 15% hard money loan which was syndicated to a group of investors who all had different agendas. The prior private lender who facilitated the initial DPO, agreed to forgive a portion of accrued interest to maintain the 70% valuation threshold for this execution. GSP worked to satisfy the title requirement of having 100% of the limited investors approve the terms. Sized to 70% LTV, the 25 year self-liquidating loan is fixed at 7.0%, yet provides for a step-down prepayment penalty. Challenge: The subject property is located in a distressed retail sub-market. This 60% occupied center has one dark anchor and a financially weak sponsor with 20 partners fighting about the future of this investment. Solution: Utilizing a very strong lender relationship GSP worked with a non-bank capital provider whom we have completed several loans with this year and succeeded in using this relationship to obtain loan approval. Mr. Shaffer met with several of the limited investors and was able to demonstrate how this execution was in everyone’s best interest. GSP also worked with the prior debt capital partners to orchestrate this closing.