$266,780,000 Cash Out Refinance of Los Angeles Multifamily Portfolio; Seven Years Interest Only

Rate: 3.54% Fixed
LTV: 65%
Term: 84 months
Amortization: Interest Only
Guarantee: Non-Recourse
Prepayment Penalty: Yield Maintenance

George Smith Partners successfully placed the refinance of a Los Angeles portfolio consisting of four multifamily properties with 1,359 units. The Sponsor locked-in current interest rates and chose to defease the existing loans to secure the rate and harvest appreciated equity. With energy and water efficiency retrofits, the Sponsor is projected to save 35% in energy and 28% in water costs, per year. As part of a green energy savings program, the Lender gave 18 bps in rate reduction that allowed for a 5% increase in loan proceeds. Sized to 65% of value, the non-recourse loans are fixed for 7 years at 3.54% with interest-only payments.


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