Transaction Overview
Transaction Description_:_ GSP arranged the acquisition loan for an 80,000 square foot industrial/warehouse building in the San Fernando Valley. The buyer is a growing discount retailer. Their own bank offered attractive financing, but GSP introduced a new capital provider who offered an extra $250,000 for capital improvements while securing a 50 basis point lower rate for the 20-year fixed rate term. GSP also improved terms with a 50% reduction in the lender origination fee, extended the amortization by ten years, and secured 6 months of interest only while the Borrower/Tenant initiates operations at this location. Of significant importance to the Borrower was the flexible pre-payment schedule and assured close under a time-bound purchase contract. The 4.30% loan is fixed for 20 years, amortized over 30 years, and closed on schedule, as applied for.
