| Transaction of the Week |  | |  | | Transaction Description: | | $17,250,000 Forward Commitment Financing for Big Box Retail Pad George Smith Partners arranged the 65% LTV financing a new big box single tenant credit retailer. The rate was locked for 130 days (over four months) in November 2011. GSP identified a life insurance company who locked the entire coupon with no rate premium. The site is a 8.38 acre parcel adjacent to a 500,000 + s.f. retail center also owned by the client. The center (not part of our collateral) includes a 50,000 s.f. grocery store, movie theater, high end chain restaurants within a contemporary outdoor setting. The investment grade tenant executed a 30 year ground lease + extensions; and constructed their own store that opens this week. The lease required the Sponsor to deliver a construction ready "clean dry pad" to tenant for their building construction. GSP arranged the construction financing last year. Our Client demolished a functionally obsolete, freestanding 200,000 s.f. building that had been vacated by a failed retailer, then added utilities and raised the pad using pilings to create the proper foundation for the new store. This was GSP's 12th financing for this client. | | | | |  | | | | SoCal Bank: Bridge, Mini-perm, Construction Debt George Smith Partners is working with a new commercial lender consisting of a four-bank roll-up. With a clean balance sheet and no legacy issues, this regional lender will fund cash flowing or less-than cash flowing transactions to $30,000,000. Make-sense underwriting is used for sizing although strong recourse sponsorship is required for higher LTV and/or transactions involving moving pieces. Out-of-market transactions are considered for SoCal borrowers. Pricing is aggressive for clients who may not size for money center banks. | | | | Hot Money | Non-Recourse Bridge Financing from $5,000,000 George Smith Partners has identified a capital provider funding reposition transactions nationwide. The portfolio lender, a mid-states regional bank, will lend on the four primary product types, plus condo inventory backed transactions. The bank will fund from $5,000,000 to $25,000,000 nationally in the top 100 markets on a non-recourse basis. Rates range from 7% to 9% interest only for the three-year term. DPOs and value-add construction will be funded with good news dollars but no ground-up is available at this time. | | | If you have an inquiry regarding George Smith Partners' commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer, at (310) 867-2995 or TAugust@GSPartners.com. | |
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