Deal: University Square
Location: San Diego, CA
Collateral: 199,039 square foot shopping center anchored by Food 4 Less and junior anchored by Crunch Fitness, TJ Maxx and the 99 Cent Only Store.
Amount: $45,825,000
Type: Floating Rate
Purpose: The purpose of this loan was to refinance existing maturing debt and replace it with short term, floating rate, non-recourse money. The borrower wanted a lender who would be able to provide maximum proceeds at the lowest spread over Libor (which they foresee coming down in the next couple years). By converting their debt to non-recourse, they limited their contingent liabilities allowing for easier construction financing in the future.