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$25,000,000 Bridge Financing for 200-Unit Multifamily Acquisition; Irving, Texas

Rate: 4.10% + 30-Day Average SOFR (4.88% floor rate)
Term: 3 Years, Two 12-Month Extensions
Amortization: Interest-Only (30 Year amortization during the extensions)
LTV: 74.1% As-Is
Prepayment: 18 Months Minimum Interest Period
Loan Fee: 1% Origination Fee, 0.50% Exit Fee
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully placed a $25,000,000 bridge loan for the acquisition and renovation of a 200-unit, 1970 vintage apartment community in Irving, Texas. GSP sourced a Lender that was able to maximize proceeds while providing future capital expenditure funding for the sponsor. The loan was sized to 74.1% of As-Is Value and includes future fundings for 100% of the capital improvements and unit renovations. The Sponsor plans on renovating approximately 75% of the units within the initial 3-year loan term.

The lender prices over 30-Day Average SOFR, as opposed to the more common 30-Day Term SOFR. The average SOFR is based on the preceding 30 days rather than the upcoming 30 days and is 60 bps lower in today’s rising rate environment.

Advisors

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