Transaction Overview
GSP placed a fixed rate, $20,000,000 permanent loan on a stabilized Los Angeles hotel last year with a major Life Insurance carrier. The Borrower recently approached GSP to secure an additional $5,000,000 to cover estate taxes. Rather than solicit traditional mezzanine capital, GSP approached the senior lender who held the loan on-book for an additional funding. As the collateral was very low loan-to-value, the senior lender agreed to the unscheduled 2nd funding. The funding as a senior note was optimal in rate and term over obtaining mezzanine debt. GSP was also instrumental in putting the Credit Committee presentation together and assisted in engaging a qualified appraiser who understood the complex ownership of the Property.
