Transaction Overview
George Smith Partners placed a $5,000,000 senior trust deed on an existing net-leased container depot in the Inland Empire of Southern California. This location is ideal given the accessibility to the Ports of Long Beach, Northern and Eastern Interstates and within two miles of an industrial railhead. With only 2,000 square feet of improvement on an 11 acre parcel, many capital providers viewed this as a land loan despite the arms-length net lease to a global logistics operator. Our Lender also structured a $1,500,000 line of credit to cover expansion costs of an adjacent parcel to be leased to the same logistics operator. Both facilities carry five-year terms although the senior note is fixed at 4.23% and amortizes over 15 years whereas the Credit Line is priced at Prime + 0.75% and is interest only. The combined debt service underwrote to better than a 1.50 dcr on actual cash flow at close.
