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.
- 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
