Transaction Overview
GSP placed the acquisition financing for the purchase of an industrial building in Sun Valley, California. With an August 2012 engagement, this assignment took one year to fully execute. The 5.0% fixed rate term self-amortizes over the life of the loan and opens to prepayment after the 5th year.
Challenge: The property presented multiple issues uncovered by inspections and environmental reports. Interest rate fluctuations added a nervous component to the transaction as any run-up in rate may have resulted in eroded loan proceeds.
Solution: The seller was motivated to sell and to remediate all the issues, knowing that every other purchaser will have the same concerns if this escrow was cancelled. GSP’s expertize was vital in orchestrating the numerous moving pieces and avoid additional pit-falls created from the time delay. GSP kept buyer and seller abreast of market rates and terms on an almost daily basis. This flow of communication helped mitigate concern as both buyer and seller were able to track underwritten proceeds on a consistent basis.
