Location:
Lone Tree Way at Empire Avenue
Brentwood, California
Client:
Sansome Pacific Properties
Property:
A 60,463 square foot shopping center consisting of five retail shop pads
Assignment:
Arrange a 12-month fixed rate forward permanent loan commitment on a to-be-built shopping center
Challenges:
Loan committed in Summer of 2006, closed in August of 2007 during the subprime credit “crisis”
Loan locked early at a rate which, at close, resulted in significant loss to the lender – lender had to be convinced not to invoke the Material Adverse Condition clause in the loan commitment
Results:
$17,500,000 (80% LTV) in two loans with one-year forward commitments
Term: 15 years
Amortization: Interest only for 5 years; 30-year amortization thereafter
