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$14,370,000 Non-Recourse Bridge Financing for a Multifamily Asset; Los Angeles, CA

Rate: L+355 (0.25% Floor)
Term: 36 Month Term (2, 12-Month Extension Options)
Origination/Exit Fee: 1.00% / 0.50%
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully arranged $14,370,000 in bridge refinancing for a 48-unit garden-style apartment community in the heart of Inglewood, Los Angeles. The Property is located less than 10 minutes from the newly constructed, high-traffic SOFI Stadium – 80,000 seats and home of the Los Angeles Rams and Chargers football teams. The Sponsor plans to renovate several non-vacant units in the building which are scheduled for tenant buyouts over the coming months, along with renovating vacant units to bring rents up to market. There is over a 50% rental upside from the current rent roll. The recapitalization provided future funding for capital expenditures and related overhead costs.

The Greater Inglewood submarket has maintained low vacancy rates at or below 4% for the past decade. The Sponsorship team recognized the Property’s underlying value, bolstered by low vacancies and subsequent demand in a rapidly developing submarket. GSP was able to identify a Lender who understood the added value of the proposed business plan, sheer lack of more affordable housing in the Metro, and Inglewood’s fast-growing market. The loan carried a 3-year term priced at 1 Month Libor + 355 basis points with a 0.25% floor and notably, included a significant cash-out to the Sponsor.

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