GEORGE SMITH PARTNERS SECURES MORE THAN $22.8 MILLION IN FINANCING FOR TWO SALT LAKE CITY PROPERTIES
LOS ANGELES, CA – April 17, 2012 – (RealEstateRama) — Commercial real estate investment banking firm George Smith Partners has successfully arranged a total of $22.8 million in financing for Doerken Properties Inc.(DPI) for two Salt Lake City properties owned by affiliates of the company, according to Principal and Managing Director, Gary E. Mozer and Vice President, Josh Roseman. The GSP team arranged financing for two properties, including a $15.3 million bridge loan on a Class B office building as well as the $7.5 million refinance of a retail property.
“Both of these properties had particularly challenging situations for achieving financing, including a lack of current rent stability and new redevelopment strategies,” explained Mozer. “By utilizing our industry experience and lender connections, we were able to leverage the borrower’s strong financing history, along with the individual strengths of each property in order to achieve financing.”
Transaction 1:
George Smith Partners’ Gary Mozer and Josh Roseman secured a $15.3 million partial-recourse bridge loan to facilitate the refinance of a 221,145 square-foot office building located in the Salt Lake City Central Business District, two blocks from the new City Creek Development. According to Mozer, more than 25 percent of the tenants in the building are on month-to-month leases, and the property’s largest tenant conveyed its intention to vacate the space during the loan process.
“The lack of rent stability on the property, combined with the relatively weak office market made for a challenging financing situation for the owner,” explained Mozer. “We presented supporting data which demonstrated the strength of the building’s location, as well as our client’s proven track record, and we successfully identified a lender that was focused on fostering a long-term relationship with our very experienced borrower.”
The partial recourse loan carries a 36-month term with two 12-month extensions. The loan closed with an interest rate of LIBOR plus 3.25 percent, with no floor and a 65 percent loan-to-value. Financing was provided by a major national bank.
Transaction 2:
GSP’s Team Mozer also secured the $7.5 million refinance of a 54-percent-occupied retail center located in Murray, Utah, a bedroom community to Salt Lake City.
“This center was challenged with a history of lacking an anchor store, as well as high vacancy and underperformance in recent years,” explained Mozer. “We successfully demonstrated the stability of our client by highlighting the property’s recent leasing velocity, including two leases over 10,000 square feet which were secured over the past six months. These leases were a direct result of the borrower’s aggressive leasing strategy, and demonstrated to the lender that our client is fully committed to the property.”
According to Mozer, the GSP team also highlighted the strength of the property’s location at a primary retail intersection in a strong retail market in order to achieve financing.
The recourse, senior, interest-only loan closed at a rate of 1-Mo LIBOR plus 3.0 percent for three years, with two 12-month extensions and a 65 percent loan-to-value. Financing was provided by a major national bank.
About George Smith Partners
Founded in 1992, George Smith Partners is a leading national real estate investment banking firm that specializes in arranging financing for commercial and residential properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. Information about George Smith Partners is located on the company Web site, www.GSPartners.com .
Contact:
Corynne Randel/ Judith Brower
Brower, Miller & Cole
(949) 955-7940
