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$9,100,000 Non-Recourse Cash Out Multifamily Refinance @ 4.15% Fixed for Ten Years

Rate: 4.15%
Term: 10 Years
Amortization: 30 years
LTV: 55%
Guarantee: Non-Recourse
Prepayment: Yield Maintenance
Origination Fee: Par

George Smith Partners secured the $9,100,000 non-recourse cash out refinance for 256 multifamily units in a Western States secondary market. Our Sponsor refinanced his existing floating rate loan into new long-term fixed rate financing.  Since initial acquisition, the Borrower commenced on a water conservation program but had yet to complete capital upgrades that would qualify him for green certification.  An interest rate reduction was offered if a completion reserve was set-aside to complete upgrades and secure the green certificate.  Initially estimated at over $100,000, the budget and subsequent reserve was confirmed at $38,000.  A pre-commitment rate lock opportunity was structured for 45 days at no cost, allowing the Borrower to monitor secondary market activity and lock at their discretion.  Fixed for 10 years at 4.15%, the non-recourse loan amortizes over 30 years. All lender fees and third party costs including legal were capped at $13,000.  Future secondary financing will be permitted to 75% of value.

Advisors

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  • $1,400,000 of Permanent Financing for 5-Unit Apartment Building; Silver Lake, CA

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    George Smith Partners secured $1,400,000 to refinance a stabilized multifamily building in Silver Lake, CA. The Property, which was built by the Sponsor in 1991, is 100% occupied. The Sponsor has owned and managed the building for over 25 years, but this is currently the only asset in his portfolio. Refinancing provided the ability to achieve a lower interest rate and return equity to increase his liquidity position. The non-recourse financing carries a fixed interest rate of 4.05% for 5 years.

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    The Sponsor’s lack of real estate experience and non-third-party property management deterred some capital providers from offering non-recourse financing. The Sponsor also had limited pre-closing liquidity which made it difficult to qualify for the most attractive rates. Lastly, the eventual lender required a 6-month interest reserve due to recent uncertainty surrounding the multifamily market.

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    Amortization: 30 Years
    LTV: 62%
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    Transaction Description:

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    Transaction Description:

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