Transaction Overview
George Smith Partners arranged the $7,795,000 ($624/SF) non-recourse first mortgage from a national debt fund for the acquisition of a 12,500 square foot office and retail building located in West Los Angeles. The 12,500 square foot building was 58% occupied at close with all tenants on month-to-month leases and inadequate cash flow to cover debt service. Cash flow will further decrease post-closing as the Sponsor vacates existing tenants to convert the space to high-end multi-tenant retail. Sized to 80% loan-to-cost, the quick-close acquisition and pre-development loan priced at 9.75% fixed for the 12-month loan duration.
