$10,510,000 Cash-Out Permanent Refinance of a San Francisco SRO

Transaction Description: George Smith Partners successfully placed the $10,510,000 cash-out refinance of a 194 unit Single Room Occupancy multifamily project in San Francisco. SRO’s are similar to other multifamily projects, except units are more like dorm rooms with shared bathrooms and/or kitchens. As apartment rents have spiked, this is one of the few affordable properties remaining in the San Francisco City Limits. GSP’s experience in this complex asset type enabled us to quickly identify a lender who not only considered the overall project quality, but understood the benefit to maintaining affordable housing in the City. Our relationship with a community focused lender allowed us to arrange a non-recourse loan to return $1,500,000 in cash that was previously invested into the rehabilitation and repositioning of the asset. Our Sponsor purchased this asset just under two years ago for $10,000,000. The non-recourse 15 year loan is fixed at 5.50% with a 30 year amortization schedule. Loan documents allow for future secondary debt as the value increases.