$2,145,000 10 Day Quick-Close Acquisition Financing for an Atlanta REO Apartment Building

Transaction Description:  GSP successfully placed the acquisition financing for 172-unit apartment building that was foreclosed on by the prior lender. The property is currently 90% occupied at below market rents. While not a true distressed asset, the former lender was not interested in owning the property, and liquidated it for $3,300,000 ($19,200 per unit). The property requires $300,000 of cosmetic improvements for maintaining or upgrading gates, fences, swimming pool & roof repairs, and stairwell reinforcement.

Challenge: The borrower is an absentee owner, and required quick close financing to accommodate their escrow commitment. Traditional “Hard Money” was not an option as the Borrower was rate-sensitive and required higher leverage debt. Certainty of execution was also mandated to avoid forfeiture of the Borrowers’ non-refundable escrow deposit.

Solution: GSP identified a reliable private equity capital provider who is comfortable with the Borrower’s business plan despite its out-of-state location. The lender provided an aggressive loan structure and proceeds at favorable pricing and ultimately closing in 10 days from signing of loan application.