Transaction Overview
GSP arranged the $7,250,000 ($328/Land SF, $1,375/Building SF) non-recourse first mortgage from a debt fund to refinance a maturing bridge loan on a 22,150 square foot land parcel located along a major thoroughfare in coastal Los Angeles. The Borrower recently entitled the land for a retail redevelopment and is now pre-leasing the to-be-constructed improvements. The loan repaid the existing debt, covered 100% of closing costs, and provides the borrower with an additional 12 months of loan term while it pre-leases the project and gains final site plan approval from the City. Even though the loan is non-recourse, the Lender did not require an appraisal or other third-party reports, nor did it require an interest or carry reserve although there is no in-place cash flow. Sized to 60% of value, the loan priced at 6.90% fixed for the 12-month loan duration.
