Rate: One-Month LIBOR + 3.20%
Term: Two years plus three, one-year extension options
Amortization: Full-term interest only
Loan to Initial Value: 75%
Loan to Stable Value: 70%
Guaranty: Non-recourse
Lender Fee: 0.75%
Prepayment: 15-month spread maintenance

Transaction Description:

George Smith Partners secured $101,300,000 in non-recourse bridge debt to refinance out an existing senior loan and mezzanine loan for a regional Southern California shopping center. The Property is a 373,000 square foot open-air, dual grocery anchored shopping center currently midway through a center-wide reposition. The Property is 96% leased but requires additional funds to complete the stabilization, including the construction of a new pre-leased pad building. The Center required a major leasing and re-leasing effort to modernize the 37 acre site into a true lifestyle center. Loan proceeds repaid the existing financing, covered closing costs, and will fund 100% of future CapEx, tenant improvement, and leasing commission costs associated with stabilizing the Property. The loan offers a 24-month initial term plus three extension options with durations of one year each, which provide the Borrower maximum flexibility. The non-recourse floating-rate loan priced at 3.20% over One-Month LIBOR and offered full term interest only payments.

Advisors

Steve Bram Managing Director & Principal / GSP Co-Founder

David R. Pascale, Jr. Senior Vice President

Nick Rogers Vice President

Rate: 4.4% fixed for 7 years, then floating at 6M LIBOR + 2.25%
Term: 30 years
Amortization: 3 years Interest Only followed by 30 year amortization
Prepayment Penalty: 3,2,1,0
LTV: 65%
DCR: 1.15x
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners secured $6,350,000 in proceeds for the refinance of two properties comprising 28 units in Los Angeles. Since acquisition, the Borrowers made significant upgrades to the Property including renovating 12 units at a cost of nearly $30,000 per unit. These units were re-leased at market rate, resulting in a considerable increase in income. The selected lender was able to give the Borrower maximum credit for the higher income without using a loan-to-cost constraint. Additionally, two of the renovated units were leased just a week before close. The Lender was able to use the additional income based on the signed leases, without requiring any seasoning. Fixed at 4.4% for 7 years, the loan provides three years of interest only payments before rolling into a 30 year amortization schedule. Proceeds were maximized by using a 1.15x Debt Coverage Ratio on the actual mortgage constant.

Advisors

Matthew Kirisits Director

Rate: 7.99%
Term: 15 month initial term
Amortization: Interest Only
Max Loan to Cost: 80%
Prepayment: None
Lender Fee: 1.5%
Exit Fee: 0.5%
Guaranty: Non-Recourse

Transaction Description:

GSP arranged the non-recourse first mortgage from a regional balance sheet lender. Due to the Sponsors and Sellers requirement for a quick close, the Lender was able to close and fund the loan in under three weeks. The Property was acquired 100% vacant at loan closing. The loan is structured as an initial 80% advance based on the purchase price and past tenant buyouts, with a further 80% ($280,000) to be future funded for the reposition and lease-up of the Property. Interest is not paid on the future funding until drawn. Furthermore, there is no lockout period providing the Sponsor with unlimited flexibility to refinance or sell the Property without a burdensome prepayment penalty.