Transaction Description:
George Smith Partners secured $14,000,000 in construction financing for an industrial project in a western state. The project is a 110,929 SF, 100% spec industrial development in an attractive industrial submarket.
GSP canvassed banks, credit unions, and debt funds to find a lender that was comfortable with the business plan, which included no preleasing before construction. GSP worked with the Lender and Borrower to structure a loan which provided 65% of the costs to construct, lease, and stabilize the building. As well as a term of 30 months to provide sufficient time to complete the lease-up after completion of construction. The loan was also structured to provide an upsized 10 year perm loan option upon stabilization.
During structuring negotiations, the Lender acquired a competitor and there were market rumors that they were suspending all lending to digest the acquisition. GSP diligenced the market and arranged supplemental calls with the Lender and the Borrower- resulting in the Borrower having well-placed confidence that the loan would not only close but also on the quoted terms.
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