| Transaction Description: |
| $20,175,000 Bridge Financing for the Acquisition of a 212 Unit Multifamily Property in Moreno Valley, California. GSP arranged financing for the acquisition of an apartment complex, built in 1989, consisting of 171,120 net rentable sq. ft. on 11.79 acres. The subject property had suffered from low occupancy and deteriorating net operating income during the last 18 months, largely because of the application for a tentative tract map which would allow the subject to be converted to condominiums. Additionally, a major rehabilitation project in 2006 on the main road leading to the site severely restricted access to the subject. The business plan anticipates a 2-3 year hold and the borrower intends to implement an aggressive management program coupled with an extensive renovation plan at a total cost of $1,558,000 with $3,618 being allocated to each unit interior to bring rents up to current market levels. Due to the limited cash flow going in, the lender structured a $500,000 interest reserve and $175,000 debt service reserve. |
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| Rate: Greater of 8% or 30 Day LIBOR + 3% |
| Term: 24 mos with one 12 mo extension option |
| Amort: Interest Only |
| LTC: 65% |
| DCR: .65 |
| Non-recourse |
| Lender Fee: 1% |
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Key Players: Steve Bram, Steven Yazdani
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