Gardena Outdoor Storage

Transaction description

Michael Warner of PSRS arranged the $6.5 million refinance of an outdoor storage and parking facility totaling 117,250 square feet in Gardena, California. The transaction was structured as a 100% cash-out refinance to create liquidity for the beneficiaries of an irrevocable trust. The trust holds the property on behalf of third-generation beneficiaries, both of whom reside out of state. PSRS was engaged to assist the beneficiaries in working with the corporate trustees to secure financing that would support ongoing out-of-state development projects and maintain adequate reserves. The recourse loan was financed through a bank, featuring a two-year interest-only term at a rate of 30-day SOFR + 325 bps, with a 55% loan-to-value.