California

Gilda Rivera placed the $8,600,000 senior debt for the cash-out refinance of a single tenant industrial building in Valencia, California. The 115,453 square foot building sits on a 4.78 acre lot. The Sponsor occupied the property since 1998 as a tenant prior to purchasing the asset in 2005. This refinance included a $3,600,000 return of equity to the Borrower. Fixed at 4.50% for 10 years, the loan was sized to 66% of value and amortized on a 30 year schedule. Challenge: Sponsor required certainty of execution as his existing loan was maturing with no opportunity to extend. Zoning reports indicated an addition to the building was non-conforming and would take months to rectify. A maximum return of equity was also sought to expand operations. Single tenant non-credit owner/user assets are not a preferred asset in the capital markets. Solution: GSP demonstrated the strong asset location and long history & strength of the Borrowers’ business. GSP identified a capital source who is familiar with this market and subsequently qualified all terms prior to execution of the application. In order to avoid a balloon default, the lender agreed to fund prior to satisfying the zoning conditions uncovered during the due diligence process, giving the Borrower two months to address the non-conforming improvements.