Transaction Description:
George Smith Partners placed a $11,350,000 loan for the refinance of a 60-unit historic multifamily property in Downtown Los Angeles. The loan request was started in Q4 of 2022 when many banks had stopped lending after reaching their full allocation for the year. As a result, GSP engaged in an extensive marketing process that included over 30 lenders. A California-based credit union was sourced that quoted a rate of 5.62%. The lender used a 1.20x DCR and underwrote to the start rate of the loan. This resulted in proceeds of $1.0MM more than several other lenders. During the closing process, the 3-year Treasury temporarily dropped, and the lender re-quoted the rate at 5.34%.
- Rate: 5.34%
- Loan Fee: Par
- Term: 3+5+7 (Fixed Rate Resetting at Each Interval)
- Amortization: 2 Years Interest Only
- Prepay: 3, 2, 0%
- Guaranty: Recourse
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