Industrial

GSP successfully closed the no-cash-out refinance of an improved parcel leased to Time Warner. The subject property is used as a warehouse and retail location for Time Warner. Challenge: While Time Warner is investment grade credit, the lease is executed by a non-credit Time Warner sub-entity, and not guaranteed by the parent corporation. The borrower required a 10-year (or longer) fixed rate term, which is three years beyond the lease expiration date. Solution: GSP identified a lender that became comfortable with the desirability of the location and the large investment Time Warner had in the infrastructure. GSP also marketed this as an 18 year self-amortizing loan which provided satisfactory cash flow to the Borrower and heavy amortization to the lender should the tenant chose not to exercise their option at the end of the initial loan term.