- Rate: 5.0%
- Term: 15 Years
- Amort: 15 Years
- LTV: 55%
- Prepayment: 0.5% for 5 Years
- Lender Fee: 0.5%
- Recourse: Entity Level Only
Description: George Smith Partners successfully placed the refinance of a church-owned property in West Los Angeles. The self-liquidating loan is fixed for 15 years, amortized over 15 years.
Challenge: Title was held in the name of the church after it had been gifted to the church via a grant deed. Banks were not comfortable funding a loan without a warm body repayment guarantor. Religious institutions are not required to file in the same manner as a commercial enterprise, thus church operational records were limited in scope and detail.
Solution: GSP quickly identified and structured a loan with a local commercial bank that had recently provided debt to other churches and was familiar with their reporting requirements. This capital provider acknowledged the non-profit Borrower and did not require a warm body guarantor. The Borrower received a competitively priced long-term fixed rate loan without any refinance exposure.
