George Smith Partners Secures $124 Million in Financing for 560,000-SF Mixed-Use Asset in Ohio

Mixed-Use Building in Ohio

Gary Mozer

 OHIO -- George Smith Partners, one of the nation’s leading commercial real estate capital markets advisors, has successfully arranged $124,250,000 in permanent financing for an approximately 500,000 square-foot, Class A, mixed-use retail and office development in Ohio on behalf of the property owner, a major real estate investor with a national platform.

The non-recourse, cash-out financing was arranged by George Smith Partners’ Principal and Co-Founder, Gary Mozer, along with Kyle Howerton, Katie Rodd, Michael Anderson, and Nicholas Rogers. 

“This is a best-in-market asset owned by a deeply experienced Sponsor who was seeking a proactive financing solution to deliver maximum flexibility during the property’s stabilization,” says Mozer. 

Kyle Howerton

“The property is already 93 percent leased to a diverse mix of both credit and non-credit tenants, however tenants are still in the process of moving in.

"By demonstrating how the Sponsor created tremendous value in the asset and the strength of both the Sponsor and local market fundamentals, we were able to attract interest from a variety of lenders including money-center banks, debt funds, mortgage REITs, and life insurance companies, thereby allowing us to negotiate a loan with tremendous flexibility for the Sponsor.”

George Smith Partners was able to arrange financing that funds 100 percent of future tenant improvements and leasing commission costs associated with stabilizing the property, while also repaying the existing construction loan, and covering closing costs.

Katie Rodd

“This is a bespoke loan tailored to meet the needs of a unique property in a unique situation,” says Mozer. “By structuring the loan on an initial five-year term compared to the typical 3+1+1 structure, we exceeded the Sponsor’s expectations by eliminating fees and performance requirements for each extension term, while also delivering cash-out at close prior to the property’s stabilization.

"Further, we secured flexible pre-payment terms, no forced funding date for the future funding component, and an accretive interest rate hedging requirement that reduces costs for the property owner over time.”

Michael Anderson

The five-year, floating rate loan is priced at 2.35 percent over one-month LIBOR, with four years of interest-only payments and 35-year amortization during the fifth year of the term. The loan is sized to approximately 70 percent loan-to-value.

Celebrating 25 years in business, George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry.

The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity.  

The company has arranged more than $52 billion in financing since its inception.

Contact:

Lindsay Mackay/ Jenn Quader

Brower Group

(949) 955-7940

Lmackay@brower-group.com

 www.GSPartners.com.