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| Transaction Description: Gilda Rivera of George Smith Partners assisted with the modification of a $2,373,000 fixed-rate note for a mixed-use Dental Office/Retail property in Temecula, California. The 11,000 square foot Class B building was 77% occupied at closing. |
| Challenge: The 23% physically vacant project was penalized for holding several month-to-month tenants. The remote and non-core market location discouraged interest from new institutional capital providers that would otherwise offer a lower indexed rate. |
| Solution: Using a creative approach to structuring the project, GSP proved to the lender through underwriting and supporting data that the loan modification offered a long-term benefit to both the Borrower and Lender. The interest rate was reduced to a market yield, the amortization was extended, and as a result monthly debt service improved significantly. There was no reduction of principal, forgiveness of debt service, or cash equity returned to the borrower through this note modification. |
| Rate: 4.25% Fixed |
| Term: 5 Years |
| Amort: 25 Years |
| LTV: 65% |
| DCR: 1:40:1.0 |
| Prepayment: Yield Maintenance |
| Recourse |
| Lender Fee: 0.25% |
| Broker: Gilda Rivera |