$42,300,000 Acquisition Financing

$42,300,000 Acquisition Financing (80% of Purchase) for 219,000 s.f. Mixed Use (Grocery/Drug/Fitness Anchored Retail and Office) Center: GSP arranged fixed rate, non-recourse financing for this newly developed property located in Ventura. The project opened in September 2002 and was still in lease-up at the time of funding. The key to the transaction was identifying a lender willing to structure and fund a fixed rate perm on a property still in the final stages of stabilization. Property Specs: 219,000 total s.f. (186,000 s.f. of retail and 33,000 s.f. of office), 11 buildings, 20 acre site. Pedestrian friendly environment includes a “linear park”, bike path and fountain square. Occupancy: 91%. Retail tenants include 58,000 s.f. grocery store, 23,000 s.f. drug store, 46,000 s.f. fitness center, restaurants, video store, etc. Office tenants include a surgery center (under construction), other medical and to-be-leased executive suites. Challenges to Financing: Property was 85% leased during initial marketing to lenders and leased up to 91% shortly after funding. Lender funded “early” to meet the acquisition schedule and held back some funds until 2 pending leases were finalized 2 weeks after funding. Also, there were complex title issues including ground lease from a utility with electric lines over buildings requiring utility company SNDA and two Reciprocal Easement Agreements with a to-be-built adjacent residential property, which required anchor tenant approval. Terms: (1) Rate: 10 yr T + 160, (borrower used early rate lock at 5.16%); (2) Term/Amort: 10 term, 2 yr interest only, then 28 yr amort; (3) LTV: 80%; (4) DCR: 1.20 (lender broke Stress Constant); (5) Non-recourse; (6) Lender Fee: Par. (Steve Bram, David Pascale, Shlomi Ronen)

In this section, we will describe newly signed applications which are indicative of cutting edge pricing and terms available in the market and may be of interest to our readers: