Transaction Description:

George Smith Partners successfully arranged the cash-out refinance of a 200+ unit multifamily property. The loan is floating at a starting rate of 2.56% and allows the Sponsor to complete a value-add strategy to increase the NOI and refinance into a permanent loan at higher proceeds in 18-24 months.

While processing the loan, GSP worked with the Lender to understand the historical cash flow which was extremely choppy due to the inconsistent rent payments during the Covid-19 pandemic. The analysis resulted in a $3,000,000 increase to the loan amount and an additional year of interest only payments.

Rate: 2.55% + SOFR
Term: 7 Years
LTV: 65%
Amortization: 3 Years Interest Only, 30 Year Am Thereafter
Prepayment: 1-Year Lockout, then 1%
Guaranty: Non-Recourse