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$10,900,000 Cash-Out, Acquisition, Reposition on a 50-Unit Multifamily Property; Los Angeles, CA

Rate: 7.99% with 4.99% pay rate
Term: 18 months
LTV: 70%
Recourse: Carve-Outs Only
Fees: 1.0%
Prepayment: None; no exit fee

Transaction Description:

George Smith Partners placed a $10,900,000 non-recourse loan for the refinance of an underperforming stabilized 50-unit multifamily community in Los Angeles. The Sponsor recently acquired the asset at approximately 50% below market from an affiliate party and GSP was able to facilitate approximately $3,000,000in cash out proceeds at closing. A portion of the loan proceeds will be used to renovate units as they become vacant in order to achieve current market rents. GSP identified a non-institutional lender who was comfortable with the cash out proceeds and who understood the history and dynamics of this non-arms-length acquisition. The non-recourse loan is fixed for 1.5 years with a 7.99% interest rate and 4.99% pay rate.


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