FINfacts XXIV – No. 488

George Smith Partners successfully arranged $62,000,000 in non-recourse financing for the refinance of a 23-property, 547,331 square foot Walmart shadow-anchored retail portfolio spanning 11 states across the U.S. 

Loan proceeds were structured to facilitate both a cash-out refinance and an ongoing value-add program by the Sponsorship. The business plan focuses on selective re-leasing and mark-to-market rent growth, capitalizing on the strong underlying performance of the adjacent Walmart Supercenters that anchor each property. 

The loan is structured as non-recourse with full-term interest-only payments, includes select release provisions, and provides future funding for capital improvements as well as leasing and tenant improvement costs. Undrawn funds do not accrue interest, further enhancing the overall economics of the structure. The loan also provided a cashout component to the sponsorship.