Transaction Overview
George Smith Partners arranged $16,000,000 in fixed-rate senior debt, placed with one of GSP's correspondent life insurance lenders, for the refinance of two office buildings in Lake Oswego, Oregon. The properties are situated within Kruse Woods Corporate Park, one of the premier suburban office corridors in the Portland MSA.
The financing retired existing debt and delivered cash-out proceeds to the Sponsor, a longstanding owner-operator headquartered at the property for nearly 30 years. In-place rents remain well below submarket comparables, positioning the portfolio for mark-to-market upside as leases roll.
Despite a more than 30 basis point move in the 10-year Treasury yield during the process, GSP secured a lender to stretch on LTV and honor the original rate lock, protecting the Sponsor from rising rates. By leveraging an existing lending relationship, GSP delivered a streamlined execution that closed on schedule at full proceeds.
