Transaction Overview
Classified as an owner-user, this multi-tenant office building was being transitioned during due diligence as a new ground floor tenant leased a third of the net rentable but had not taken occupancy due to COVID restrictions. The delayed funding worked to our Sponsor’s benefit as it allowed GSP to restructure the loan for additional net proceeds while reducing the Sponsor’s current SBA pre-payment penalty. All additional proceeds were used to consolidate business lines and other unrecorded debt at a substantially lower interest rate. An early rate lock feature permitted the Sponsor to take advantage of lower indexes prior to the rate bump. This non-SBA execution is fixed for ten years at 3.00% and was sized to 75% LTV and a 1.25 DCR. The loan is open to prepayment without penalty after the 5th year.
