$233,600,000 Cash Out Refinance of a 1,359 Unit Downtown Los Angeles Multifamily Portfolio; 10-Years Interest Only at 4.02%

Rate: 4.02% Fixed
LTV: 60%
Term: 120 months
Amortization: Interest Only
Guarantee: Non-Recourse
Prepayment Penalty: Yield Maintenance

George Smith Partners arranged the refinance of Medici and Orsini I, two multifamily properties totaling 1,359 units located in Downtown Los Angeles. GSP advised the Sponsor to refinance the existing loans which were at 5.5% and 5.1%, respectively, with less than two years remaining, to take advantage of low interest rates in a rising rate environment. Upon analyses of interest rate savings over a 10-year term, GSP determined that the new interest rate payments would offset the early prepayment costs. In addition to securing long-term, fixed rate 10-year loans, the refinancing generated significant net cash proceeds from the appreciated equity of the two properties. Sized to 60% of value, the interest only, non-recourse loans are fixed at 4.02%.

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