Wednesday, May 22, 2013

GSP Closes $185,000,000 Retail Loan Portfolio

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George Smith Partners, Inc. arranged the seven-year, non-recourse senior financing for this four-property retail portfolio.  This financing enabled our Client to satisfy all debts including the senior and mezzanine debt, cover defeasance costs and lock in a long-term fixed rate on these core properties.  The Borrower requested “custom” financing including:  (1) Four separate un-crossed loans; (2) Lowest possible rate; (3) Portfolio lender; (4) Partial Interest Only; (5) Extended early rate lock to allow additional defeasance burn-down; (6) Future Institutional mezzanine financing.  Three of the four properties offer grocery anchors, and the remaining unanchored center contains an office component with restaurants.  The unanchored center is supported by compelling market dynamics and consistent 97% occupancy.  Two of the properties have potential lease reposition elements due to expiring tenants.  The Lender was comfortable conforming to all of the Borrower loan structure requests due to the Borrower’s local expertise, proven experience, back-office infrastructure and regional Borrower-owned property management headquarters.  GSP arraigned the acquisition debt for these assets when purchased in 2003-2004.
Property #1 ($70,600,000): Grocery Anchored; 375,000 s.f.; 39 tenants, built in late 1960’s with 1992 rehab; 3 main buildings and 11 pads in a linear configuration. Located in Northern Orange County.
Property #2 ($32,000,000): Grocery Anchored; 187,000 s.f.; 29 tenants, built in early 1980’s with anchor expansion in 2002, 4 buildings in U shape with 2 pads. Located in Southern Los Angeles County.
Property #3 ($40,200,000):  Community retail center (with some office); 181,000 s.f.; 46 tenants located next to mega-mall anchored by sporting goods store.  Includes “restaurant row” serving residents and local office submarket.  Located in  South Bay (LA County)
Property #4 ($42,200,000): Grocery/Drug Anchored; 218,000 s.f.; 44 tenants, Built in 2003, Mediterranean style architecture, some office component, very small portion of collateral is on ground lease.  Located in Ventura County.