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Trophy Gas Station; 3.1% Interest Rate for 10 Years; Orange County, CA

Rate: 3.10% Interest Rate
Term: 10 Year Term
LTV: 40% LTV
Amortization: 20 Years
Lender Fee: Par
Guaranty: Full Recourse

George Smith Partners secured $5,000,000 of senior financing for a gas station located at a premier Orange County intersection. The loan is fixed at 3.10% for the entirety of the 10-year term. This is one of the lowest fixed rate financings ever placed by GSP even though gas stations are typically priced with an interest rate premium.

The asset class presented a unique challenge when marketing the Project. GSP was able to arrange the loan with a money center bank by highlighting the strong cash flow, extensive experience in management and operations, and irreplaceable site location. The Lender did not require a depository relationship from the Sponsor, even though she was not an existing client.

The Sponsor showed concerns about having a large loan balance towards the end of the loan term, believing that the continuing growth of electric vehicles could diminish the value of gas stations in the future. GSP negotiated to allow the Sponsor to pay down up to 15% of the outstanding loan balance every year. The amortization was also reduced to 20 years to accelerate the principal paydown.


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    Transaction Description:

    George Smith Partners placed a $20,000,000 refinance for a 30-year-old specialty storage facility in California. The high security, temperature and humidity-controlled facility is used for specialty uses, and other high value items. The COVID-19 pandemic made the Sponsor’s request more challenging as it consisted of non-recourse financing for a specialty asset. George Smith Partners reached out to several dozen Capital Providers to find a relationship lender that would meet the Sponsor’s needs. The Property has performed well historically and continues to perform very well during the COVID-19 pandemic.

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  • $21,700,000 Construction-to-Perm Loan for Self-Storage Project; Santa Clarita Valley, CA

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    Transaction Description:
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  • $4,500,000 Non-Recourse Self Storage Adaptive Reuse Construction Financing Fixed at 4.75%; Orlando, FL

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    Transaction Description:

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    Transaction Description:

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