Rate: 10-Year Swap Rate + 185 bps; 3.31% Fixed
Term: 10 Years
Amortization: 30 Year, 10-Year Interest-Only
LTV: 65%
Prepayment: Defeasance
Guaranty: Non-recourse except for “bad acts” and environmental

Transaction Description:

George Smith Partners successfully placed $30,000,000 in permanent fixed-rate financing for a 230,000 SF infill Southern California retail center amidst the COVID-19 pandemic. As a market-leading retail center near local economic and transit hubs, the Property’s mix of need-based and experiential tenants proved resilient. Capital providers continue to be hesitant in financing retail but were specifically concerned with California’s mandates that impacted the operation of non-essential businesses. As non-essential businesses and experiential tenants comprise a significant portion of tenancy, this posed significant challenges. These included the temporary closure of a movie theatre with less than one year of primary lease term remaining and a fitness center that vacated during the pandemic.

George Smith Partners secured 10 years of permanent financing with full-term interest-only in a financial environment that continues to be cautious towards retail. GSP negotiated competitive pricing at the desired level of proceeds and guided the deal to a successful closing.

Rate: 3.04%, Fixed
Term: 10 years
Amortization: Full-Term Interest Only
LTV: 65%
Lender Fee: Par
Prepayment: Defeasance
Guaranty: Non-recourse

Transaction Description:

George Smith Partners successfully placed $10,465,000 in non-recourse acquisition permanent financing for a 77,267 square foot, non-credit-grocer anchored retail shopping center in a transitory Pacific Southwest MSA. The tenant mix includes several national credit tenants along with local and regional stores (including the grocer anchor), all of which remained in-place during COVID-19. GSP was able to identify a lender who understood the complexities of retail in a post COVID environment. The non-recourse permanent loan was sized to 65% of purchase price, included 10years of interest-only payments at a fixed rate of 3.04% for 10 years. Lender fee is at par.

Rate: 7.90% Fixed
Term: 12 months, with Extension Options
Amortization: Interest Only
LTP: 40%
Prepayment: None
Guaranty: None

Transaction Description:

George Smith Partners successfully arranged a bridge acquisition financing for a single-tenant industrial building in Gardena, CA. The Property is 9,300 SF on an approximate 18,731 SF parcel. The previous owner occupied the space, and the building is now vacant. There was an existing environmental issue that limited the pool of interested capital providers. However, GSP leveraged its market expertise and relationships to identify a lender comfortable with the Property and Sponsor, who is a repeat client. GSP secured a 12-month, non-recourse bridge loan at 7.90% fixed with interest-only payments and no prepayment penalty. This will provide the Sponsor time to resolve the environmental issue, lease the Property and season it for permanent financing. The financing closed within 12 days of term sheet issuance.