$9,096,000 Fixed Rate Bridge Refinance on 1920’s Downtown Los Angeles Brick-Built Multifamily Property

Rate: 6.50%
Term: Five Years
Amortization: 24-months interest only, 40-year amortization thereafter
Loan to Value: 80%
Prepayment: 2%, 1%, open
Guarantee: Partial Recourse (burns off once Property achieves debt coverage hurdles)
Lender Fee: 1.00%

GSP arranged the $9,096,000, 80% loan to value first mortgage on a 1920’s vintage multifamily asset in Downtown Los Angeles. The Property was previously burdened by unforeseen operational challenges which prevented the Sponsor from maximizing Property cash flow and limited eligibility for competitive financing terms. GSP identified a regional balance sheet lender to provide a five-year loan that includes funding for capital expenditures to complete the Sponsor’s renovation plan. The loan has a fixed coupon to eliminate interest rate risk during the term and includes two years of Interest Only payments to maximize cash flow during the renovation. The loan includes an interest reserve to cover debt service during the peak reposition period, and the recourse obligation burns off upon the Property’s achievement of predetermined debt service coverage hurdles.

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