George Smith Partners Arranges $7 Million in Financing for Property on Santa Monica’s Third Street Promenade

Converse Retail Store, Santa Monica, CA

 LOS ANGELES, CA (Dec. 10, 2012) – Commercial real estate investment banking firm George Smith Partners has successfully arranged a $7 million full cash-out loan for a private client on the client’s 7,500 square-foot property, located on Santa Monica’s Third Street Promenade.

 The current building tenant is a Converse retail store, the brand’s first West coast location, according to Vice President Marc Schillinger of George Smith Partners.

Marc Schllinger

“Third Street Promenade has been evolving into Southern California’s premier retail and entertainment destination, and as such, values and rents on a per-square-foot basis have become among the highest in Southern California,” explains Schillinger.

 “The high loan-per-square-foot of $933 was a challenge when finding the appropriate lender for our client, as lenders are often unaccustomed to this high-value market and get nervous at such a high loan-per-square-foot price.”

Third Street Promenade, Downtown Santa Monica, CA

According to Schillinger, George Smith Partners was tasked with securing a loan with the longest term and lowest rate possible, while also ensuring that the financing would provide for complete prepayment flexibility.

An additional challenge in this particular transaction was that the fixed-rate term the client was seeking exceeded the building’s current tenant (Converse)’s lease term by six years.

George Smith Partners secured a 15-year fixed loan, with a 30-year amortization at 4.98 percent interest. Rate lock was honored for 160 days and a majority of the loan term provides for a step-down prepayment feature.

 Barbara Tenzer of Tenzer Commercial represented the lessor, contributing her local market expertise and firsthand knowledge of the lease to George Smith Partners to support the rent and value assumptions on the promenade, according to Schillinger. 

For a complete copy of the company’s news release, please contact:

Corynne Randel/ Judith Brower

Brower, Miller & Cole

(949) 955-7940

Crandel@browermillercole.com

 www.GSPartners.com.