Transaction Overview
George Smith Partners secured a refinance loan for a three-story office building located on the Sunset Strip in West Hollywood. The loan is fixed at 3.8% and has a stepdown prepay that becomes 0% after 3 years.
The Sponsor is holding the Property for redevelopment and required a flexible loan with a low interest rate. The Property receives more than half of its income from a cell tower site and a rooftop billboard. Most lenders would not include this income because the leases have cancellation clauses, but the selected Lender agreed to include it. They also provided a prepayment structure that aligns with the timing of the Sponsor’s business plan. As a result, the loan can be paid off with no prepayment penalty once entitlements are secured for the redevelopment project.
