Transaction Overview
George Smith Partners successfully placed $9,200,000 in non-recourse, floating-rate bridge debt on an 87% leased, 1980’s vintage, Los Angeles County multi-tenant retail property. The asset is shadow anchored by a regional ethnic grocer that owns its own store and does not report sales, but is known to be a one of the top stores in the company’s chain. The owned collateral includes a national investment-grade off-price retailer that rents a large additional storage suite at significantly below market rent on a month-to-month basis. In order to execute the Sponsor’s business plan of re-leasing the storage space as market rate space and upgrading the remaining tenant mix, GSP identified a lender that provided a short-term bridge loan at 80% of total project costs, including a future funding associated with lease-up costs. The non-recourse loan priced at one-month LIBOR plus 4.95%. Interest is not paid on the unfunded proceeds until drawn.
