Transaction Overview
Shahin Yazdi placed the $5,019,000 rate and term refinance of a 96% occupied Southern California in-line retail asset. The loan is fixed for seven years at 4.50%, amortized over 25 years and offers a step-down prepayment penalty.
Challenge: The Borrower only had one month of debt service in liquidity, far below the typical six months required. The asset is leased to local tenants with no credit or national brand name recognition. All leases roll within the next three years. A 50 day close was required regardless of the Thanksgiving, Christmas and New Year’s holidays.
Solution: The new lender was very comfortable with relying upon the asset to serve as the sole source of repayment. GSP provided ample rental and occupancy comparables to support the strength of this asset. All current tenants have longevity at this location and have consistently renewed their leases at termination. Underwriting was further supported by a very long and stable historical cash flow under the current Borrower ownership. 3rd party reports were rushed and all parties agreed to work diligently through the holidays. The loan funded within 40 days of receipt of an executed application.
