Transaction Overview
George Smith Partners successfully arranged $7,800,000 in cash-out permanent financing secured by a shopping center anchored by national grocery store and discount retailer, located in Tulare, California. The property consists of 15 tenants with a total rentable area of 82,852 SF.
The subject property is encumbered by a ground lease. Located in a tertiary market, the property is 88% occupied. The tenants are under short-term leases, 90% of which will roll within the first five years of the loan term. GSP identified a capital provider who was comfortable with ground leases and short-term tenant leases by underwriting a reserve for tenant improvements and leasing commissions. The non-recourse loan floats at 10-year Swap + 2.20% for 10 years. Interest only for 5 years, and 30 year amortization thereafter.
