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Lender Flexibility Crucial in $172M Loan Deal

LOS ANGELES—George Smith Partners' J. Jay Brooks credits lender flexibility in helping to secure the funds for a portfolio of 36 assets in litigation, GlobeSt.com reports in this UPDATE to a previous story.

By Kelsi Maree Borland | Updated on November 05, 2014

LOS ANGELES—According to George smith Partners SVP J. Jay Brooks, lender flexibility was crucial in securing a $172.3 million bridge loan for a portfolio of 36 assets under litigation. In an earlier story, GlobeSt.com reported that George Smith Partners secured the loan on behalf of the borrower, who will use to proceeds from the loan to pay creditors off in full.

“With a portfolio of properties that have good historical cash flow, the lender asks why would those properties be in litigation. It just doesn’t make sense,” Brooks tells GlobeSt.com. “It only made sense in the context that the existing debt matured during the recession. At the time, there might have only been two or three or four CMBS lenders, but by the time this closed, there were 20 CMBS lenders. Now, this is not a CMBS loan, but that is an indicator of how much capital was available in the market. So, we had to find more of a balance sheet lender that had a securitization component that would allow us to get this deal done, but that also had to be a very flexible platform to get this deal closed.”

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