LOS ANGELES, CA – 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 (top right photo) and Vice President, Josh Roseman (middle left photo).
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.”
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.
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.
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.”
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.