Contact:         
Corynne Randel/ Judith Brower
Brower, Miller & Cole
(949) 509-6551
Crandel@browermillercole.com

GEORGE SMITH PARTNERS COMPLETES
$15 MILLION INDUSTRIAL LOAN TRANSACTION IN SAN DIEGO

LOS ANGELESHILLS, Calif., (JULY 22, 2010)—Commercial real estate investment banking firm George Smith Partners has completed a $15 million senior permanent loan for three warehouse distribution buildings totaling 230,000 square feet in San Diego, Calif. according to Gary Mozer, co-founder, principal and managing director of George Smith Partners.  Mozer was assisted by George Smith Partners’ Josh Roseman and Steve Orchard on the transaction.

“The loan terms in this transaction were unique,” Mozer explained. “Lenders are commanding premiums, even on high-quality stabilized products like this one.  A four-percent interest rate on loan proceeds sized to 12% debt yield is a testament to the strength of our client.  They are a great operator and very well capitalized, so the bank wanted to establish a relationship.”

The senior 5- year floating rate loan was closed at a 4% start-rate, 65% loan-to-value, and top-25% personal recourse. The buildings are currently 97 percent leased to five tenants with leases expiring from 2011 through 2016.

“The industrial market in this area of San Diego is currently 13% vacant.  If the lender made an underwriting adjustment to this level, proceeds would have suffered drastically,” Mozer explained. “By working with the lender to distinguish the true competitive set from the general market, we supported a 7% vacancy among relevant comparables for underwriting purposes. GSP also helped show the strength of the tenants and location as being significant risk mitigation factors,” Mozer added.

About George Smith Partners

Founded in 1992, George Smith Partners is a leading national real estate investment banking firm that specializes in arranging financing for commercial and residential properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity.  Information about George Smith Partners is located on the company Web site, www.gspartners.com.