LOS ANGELES-Real estate investment banking firm George Smith Partners has arranged a $19.2-million cash-out refinance of an existing bridge loan on Sylmar Towne Center, a grocery-anchored retail center in Los Angeles. Sylmar Towne Center is a 150,000 square-foot retail center including a Ralph’s Grocery, as well as Big Lots, CVS and Kragen Auto Parts.
The non-recourse 10-year loan closed with a 5.39% interest rate, 30-year amortization and 71% loan-to-value. The borrower required a non-recourse financing structure from the new lender, according to a prepared release, which would not only provide a return of equity, but also release free and clear an adjacent parcel of land owned by the borrower that had been previously encumbered as collateral.
“Despite the return of the capital markets, non-recourse cash-out retail financing is a very tough deal to make,” says GSP principal and managing director, David Rifkind, who arranged the deal with senior vice president, Eric Hamermesh and assistant vice president, Loren Bedolla. “We surveyed the permanent debt market including life insurance companies, banks and wall street conduits to identify a lender that would understand the unique characteristics of this asset and provide the funding the client required.”
Rifkind tells GlobeSt.com that the borrower is Sylmar-Glenoaks LLC, however he could not release the identity of the lender at this time.
Multiple issues that required GSP’s expertise also arose during the due diligence period of the transaction, according to Rifkind, including tenants in transition, legacy environmental issues, and parking and zoning ambiguities with the city. “We worked extensively with all parties to secure this loan which offers a fully-funded lease up and rehab reserve that supports the borrowers’ investment objective. We were also able to convince the new lender to release the adjoining parcel from their collateral by showing that it did not contribute to the net cash flow.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
