- Rate: 3.625% Fixed for Five Years; Floating at LIBOR + 2.40%
- Loan-to-Cost: 75%
- Term: 10 Years
- Amortization: Three Years Interest Only
- Prepayment: 2%, 1%, Open
- Non-Recourse
- Lender Fee: Par
Transaction Description: GSP successfully sourced the $15,000,000 non-recourse acquisition loan for a 118-unit, Class-A apartment community located in a suburban community outside Seattle, Washington. The 75% loan-to-purchase, ten-year loan is fixed for five years at 3.625% with three years of interest only payments. The loan converts to a floating rate structure during the sixth year for the remaining ten year term at LIBOR + 2.40%. Our portfolio Capital provider did not charge an origination fee or require a cash management account, impounds or replacement reserves, which minimized upfront deposits and provides maximum flexibility for the duration of the loan. Stepping down from 2%, the loan is pre-payable with a favorable penalty structure and is open after the 2nd year without penalty.