Rate: 2.51% + 1-Mo SOFR
Term: 7 years
Max LTV: 60%
Amortization: None; 10-Years Interest Only
Origination Fee: 1%
Prepayment: 1% Exit; 3-Months open; PP waived w/ Lender Refi
Transaction Description:
George Smith Partners secured a senior floating rate loan for a stabilized multifamily property in Kent, WA. The non-recourse debt totaling $12,200,000 was utilized to refinance existing acquisition bridge debt and return of a significant amount of equity to the Ownership. The loan was structured with a 7-year term and interest only payments for the entire duration. The loan was collateralized by a 95-unit multifamily building; the Subject was 97% leased at closing. The Sponsorship had recently renovated approximately 70 of the units with plans to complete the remaining 25 units over the next 18 months.
GSP selected a lender that offered an extremely attractive coupon. The variable rate provided the Sponsorship flexible prepay in the event of a future sale while supplying cash-out proceeds at funding. GSP negotiated a very minimal 2-year rate cap, and the Lender waived all Covid debt service reserves. The Property appraised for more than expected and GSP worked with the Lender to both increase the proceeds and reduce the spread.
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Related Financings
- No related financings.
