Transaction Overview
George Smith Partners arranged $800,000 in cash-out financing for a two-property office and retail portfolio located in Los Angeles, CA. The Sponsor retained GSP to quickly pull equity out of debt-free properties and use the proceeds towards purchasing and renovating additional properties. GSP selected a debt fund that was able to move quickly to accommodate the Borrower’s timeline. This was a quick way to access funds without selling any stocks or other holdings. The Lender’s credit department approved the loan three days post submission and did not require an appraisal to close. The non-recourse facility was priced at an interest only fixed rate of 7.90% with a 12-month term, plus a 6-month extension option. With no prepayment, this facility provides additional flexibility to the Borrower, allowing for the Borrower to refinance into a permanent loan at a lower rate. Despite being on a strict closing deadline, GSP was able to close the loan within 7 days of signing the term sheet.
