$2,451,000 and $1,042,000 Permanent Cash-Out Financing for 2 Multifamily Properties in Burbank and Los Angeles, California

Transaction Description: GSP successfully arranged the refinance of two apartment buildings in Burbank and Los Angeles for the same borrower. The properties were not crossed. Pacific Crest Realty, led by Mr. Dan Tenenbaum, requested a 10 year fixed term on the larger asset and a 7 year term on the smaller loan, to accommodate their long-term ownership strategy.

Challenge: The ownership is comprised of entirely non-US citizens and given their long ownership history, were seeking a return of equity. Only the managing member, a minority owner in the LLC was available to execute the carve-outs. Finally, the appraiser concluded actual rents were above the market and threatened proceeds.

Solution: GSP was able document excellent asset management and a substantial long-term hold with consistent cash flow in order to circumvent the citizenship and cash out issues. GSP also proved through market comparables, an increase in rental asking rates and compression of operating expenses.