Transaction Overview
George Smith Partners arranged $8,000,000 in non-recourse financing for the refinance of a vacant office building in Culver City which had just completed an extensive renovation into creative office. The Sponsor purchased the two-story building over 15 years ago as an owner-user. He invested significant capital to improve the building and create a modern creative office property that would appeal to creative office users in the technology and media industries attracted to Culver City. Prior to the pandemic, the Sponsor was negotiating with multiple tenants to occupy the building. These potential tenants paused on negotiations and the Sponsor had to quickly refinance his construction loan with a new bridge loan to allow him more time to lease-up.
GSP accomplished the Sponsor’s goal to refinance the existing loan with a facility that is pre-payable at any time. This facility allows the Sponsor to lease up the remaining vacant space and refinance with a long-term loan in the next 6-12 months and it also provides additional funds for tenant improvements. GSP was able to identify a local lending source that not only understood the market and demand for office space in Culver City but also understood the overall value of the Property.
