Transaction Overview
GSP arranged financing for a vintage historic Bay Area warehouse. The 28,000 s.f. property was fully renovated in the early 2000’s and is leased to a single tenant for creative office use. The building is fully entitled for 74 units of residential (For Sale or Rentals). The Sponsor contacted us with less than 2 weeks remaining in the year and needed to close by year-end or lose the property to foreclosure. The loan funded at below break-even DCR and the Lender did not require an interest reserve to maximize proceeds at closing.
Challenge: The Sponsor had a hard payoff date by year-end with an executed deed in lieu. The Borrower was under a forbearance agreement with the deed in escrow, meaning the Sponsor would lose the property on January 2nd.
Solution: GSP sourced a Los Angeles private placement lender who closed in 7 days under the terms agreed to in the application. The Lender increased loan proceeds by $400,000 during the loan process. The Lender flew up and met with the Borrower the day the application was executed. The Lender agreed to accept some documentation (ie lease guarantee) post-close. GSP funded 3 loans with this capital provider in 2011.
