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$15,150,000 Construction Take-Out Loan on Stabilized 54-Unit Multifamily; Los Angeles, CA

Rate: Fixed 3.25% for 7yrs then floating at SOFR + 2.25%
Term: 30yrs
Amortization: 3-year IO followed by 30yr AM
LTC: 85%
LTV: 70%
Prepayment Penalty: 5,4,3,2,1%
Guaranty: Recourse

Transaction Description:

George Smith Partners secured senior, permanent financing for a fully stabilized 54-unit, multifamily property in Los Angeles, CA. The recourse debt totaling $15,150,000 was utilized to take out the maturing construction loan and return equity to the Sponsorship. The loan was structured with a 7-year fixed period, with a 30-year term.

GSP selected a lender capable of providing cash-out, along with keeping the low rate guaranteed for over three months while the Property reached stabilization. The appraisal of the Property came in under the 70% loan-to-value threshold, granting the request for 3-years of interest-only payments added to the loan terms.

Advisors

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