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$12,000,000 High leveraged Permanent Multifamily Financing in Tulsa, OK

Rate: 4.5% Fixed
Term: 7 Years
Amortization: 30-Year Amortization
LTV: 75%
Guarantee: Recourse
Prepayment Penalty: None

Transaction Description:
George Smith Partners successfully arranged the permanent financing for a class C, 350-unit apartment complex located in Tulsa, Oklahoma. The Sponsor sought a permanent loan to refinance the Property after spending a million in upgrades. The Sponsor’s goal was to lock in a long-term, low interest rate in a rising interest rate environment as the building was close to reaching stabilized occupancy.

The Sponsor had turned around a rough non-performing property and was in the process of completing the lease-up. In addition, the Sponsor’s syndication structure made financing more complicated because of the small shares of ownership.

GSP was able to prove to the Lender the Sponsor’s successful track record with similar properties, highlight the Property’s growing position in the market and the strong rent growth. Because GSP has completed so many other deals with syndicators, we were able to structure the loan so that both the Sponsor and Lender were comfortable.

Related Financings

  • Permanent Financing for Acquisition of 12-Unit Multifamily Property; Los Angeles, CA

    October 26, 2022

    Transaction Description:

    George Smith Partners arranged $2,250,000 in permanent financing for the acquisition of a stabilized 12-unit multifamily property in Los Angeles, California. The Sponsor acquired the Property as interest rates were soaring and as the environment was changing drastically with the Fed raising rates. GSP identified a Capital Provider who allowed an early rate lock, required no holdbacks of any kind, no deposits to be held at their branch, and provided an extremely flexible prepayment penalty structure. This allows the Sponsor plenty of options during the next 5 years at an aggressive rate.

    Rate: 4.34%
    Term: 5 Years Fixed
    Amortization: 30 Years
    Prepayment Penalty: None
    Reserve Account: None
    Deposits Required: None

  • $120,115,000 Permanent Financing for 526-Unit Multifamily Property, Los Angeles, CA

    August 31, 2022

    Transaction Description:

    George Smith Partners has secured $120,115,000 in permanent financing for a 526-unit multifamily property, the Da Vinci Apartments. The Property is a 98% occupied, institutional quality, 5 and 6-story residential complex located in Downtown Los Angeles. The loan is fixed for 10 years at 4.38% with interest-only payments for the first 7 years.

    Despite Los Angeles’ COVID-based eviction and rent control issues, GSP was able to work with the Lender to underwrite the NOI to accomplish the targeted loan amount. GSP also facilitated an early rate lock to protect against changes in the interest rate prior to the loan’s closing.

    Rate: 4.38% Fixed (T+ 1.45%)
    Term: 10 Years
    Amortization: 30 Years with 7 Years IO
    LTV: 45%
    Guaranty: Non-Recourse

  • $15,100,000 Cash-Out Refinance of a 5-Property Multifamily Portfolio at 3.40% – 70% LTV; Los Angeles, CA

    April 11, 2022

    Transaction Description:

    George Smith Partners arranged $15,100,000 in permanent financing for the refinance of a 5-property multifamily portfolio located in Los Angeles, CA. Using GSP’s vast network of relationships, we were able to source and quickly lock fixed rate financing in a market that is seeing rising interest rates. The Sponsor also wanted to pull cash out of their existing multifamily portfolio to use as equity towards purchasing new properties. The Sponsor had recently completed exterior and interior renovations including common area upgrades to all five properties. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 30-year term, with the first 5 years being fixed at a rate of 3.40%. The loan represents 70% loan to value with a minimum 1.20 DSCR. The flexible stepdown prepayment structure is equal to 5,4,3,2,1. The cash-out loan allows the Sponsor to use more equity towards growing their multifamily portfolio. Thanks to GSP’s long-standing relationship with this bank lender, we were able to meet the Sponsors deadline and close this transaction within 35 days from signing the term sheet.

    Rate: 3.40%
    Term: 30 years term, fixed for first 5 years
    LTV: 60%
    DCR: 1.20

  • $26,560,000 Permanent Financing for a 284-Unit Multifamily Asset; Rexburg, ID

    March 9, 2022

    Transaction Description:

    George Smith Partners secured $26,560,000 in permanent financing for a 284-unit multifamily project located less than a mile from Brigham Young University-Idaho (BYU-I), one of the country’s fastest growing universities and Idaho’s largest university, in Rexburg, Idaho. The apartment complex features novel, modern 2-bedroom apartment units with boutique amenities including a racquetball court, 24/7 state-of-the-art gym, outdoor grill and fire pit lounge area, dog park, and clubhouse with conference rooms. The community was developed in phases, so the refinance retired existing construction and bridge debt, provided significant cash-out to the Sponsor, and reduced their previous interest rates considerably.

    The Rexburg multifamily submarket is undergoing a colossal renaissance, seeing over $1B of new investments and a population growth of over 62% over the last decade. The Sponsor, a local developer with significant knowledge and experience within the Rexburg market, recognized the need for high quality product in a supply constrained market. GSP was able to leverage market interest to secure the most competitive terms available by focusing on the desirable location as well as the Sponsor’s track record and familiarity with the high-growth market. The loan carried a 35-year term priced at a 2.91% fixed-rate and 80% LTV.

    Rate: 2.91% Fixed-Rate
    Term: 35 Years
    LTV: 80%

  • $6,650,000 Perm Financing for Single Family and Multifamily with ADU/JADU Portfolio; North Hollywood, CA

    March 1, 2022

    Transaction Description:

    George Smith Partners secured three separate loans totaling $6,650,000 for the permanent financing of a portfolio of three properties/15 units in North Hollywood, CA. The Properties were acquired-entitled and developed by the Sponsor to include a combination of multifamily, single-family-detached with ADUs and JADUs. The Properties are located within proximity to each other and were in various stages of lease-up and stabilization at the time of the financing.

    The recourse loan refinanced both equity and construction debt with perm financing with a total term of 10 years. The three separate loans represent 70% loan to stabilized value with a minimum 1.15:1.0 DSCR. The loan allows for open prepayment with yield maintenance.

    The Sponsor’s business plan provides for much needed housing and increased density developed under the AB-68 Land Use Act for Accessory Dwelling Units passed by Governor Newsom and the State of California in October 2019. GSP was able to secure a lender that was comfortable with the collateral which required varying ownership structures including a land trust as required for JADUs.

    Rate: 4.05% Fixed for 10 years
    Min DSCR: 1.15:1.0
    Loan Fee: 1%
    Term: 10 Years
    Amortization: 30 years
    Recourse: Recourse
    Prepayment: Yield maintenance

  • $6,225,000 Construction-to-Perm Multifamily Financing; Los Angeles, CA

    January 12, 2022

    Transaction Description:

    George Smith Partners successfully placed construction-to-perm financing of $6,250,000 for the development of a 19-unit multifamily community in West Los Angeles, CA. The 4-story building will provide 1, 2 and 3-bedroom units in a supply-constrained submarket. The recourse loan provides for two-years of interest-only financing with a 6-month extension that converts to a perm loan with a combined term of 10 years. The starting rate is fixed for 7 years then amortizing. The loan represents 60% of stabilized value and 70% of cost and allows for open prepayment based on a prepayment fee of 2%,2%,1%,1% in years 1 to 4. The Project will be Type-V construction consisting of 4-stories, a rear 750 SF community courtyard, partial ground level and partial subterranean parking. Unit mix includes studio, one and two-bedroom units including two low-income units. All units include covered patios however non-studio units include larger than average outdoor living terraces that range from 130 to 193 SF. Community amenities include a rear courtyard with firepit lounge and BBQ grill. The units average 654 SF in size. The Project represents the Client’s second multifamily construction project. GSP was able to assist in bringing in a qualified general contractor and get the Lender comfortable with the Borrower’s ability to execute despite their limited development track record.

    Rate: 3.6% Fixed 7-years
    Term: 10 years
    Amortization: Interest-Only Years 1-2 then 30-year amortization
    Extensions: One 6-Month Option
    Guaranty: Recourse
    Prepayment: 2%,2%,1%,1%
    Loan Fee: 1%