Don't Miss a Fact,
Sign Up for FINfacts!

FINfacts is a weekly newsletter highlighting recent financings and economic insights.

Subscribe Here

$14,430,000 Permanent Financing for a Newly Developed Student Housing Property; Memphis, TN

Rate: 5.41% (7-Year Treasury + 2.40%)
Term: 7 Years
Origination Fee: Par
LTV: 62.5%
Prepayment: Yield Maintenance Years 2-4, 2%, 1%, 0%
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners secured a $14,430,000 permanent loan for an 85-unit, 208-bed, student housing property near the University of Memphis. The Sponsor was able to lock rate at application and secured the 5.41% fixed rate for seven years. In a rising rate environment, the ability to lock rate at application gave the Sponsor confidence in the terms of the loan and provided a clear path to closing. Prior to the refinance, the Property was encumbered by the construction loan having been recently completed in 2021. The Property was extremely successful in its first year of operations, having leased up to over 90% occupancy. During GSP’s marketing process, the property was significantly pre-leased for the upcoming school year providing lenders with the assurance of forward cash flows and clarity in their underwriting process. GSP contacted a variety of lenders including life insurance companies, CMBS lenders, and banks to provide the client with a wide variety of avenues to capture the most competitive lending terms in the current economic environment.

Related Financings

  • No related financings.