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| Mixed-Use Building in Ohio |
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| 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.
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| 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.
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| 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.”
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| 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
(949) 955-7940
