$27,350,000 ($337,655/unit) Cash-Out Permanent Financing for an 81-Unit, Two-Property Multifamily Portfolio; Los Feliz and Burbank, CA

Rate: 3.75% (fixed) for seven years
Term: 30 years
Amortization: Five years interest only; 30-year amortization thereafter
LTV: 65%
DSCR: Sized to a 1.15x DSCR with an initial funding sized to a 1.20x DSCR
Lender Fee: Par
Prepayment: 5,4,3,2,1% step-down prepayment
Guarantee: Non-Recourse

Transaction Description:

George Smith Partners successfully placed $27,350,000 ($337,655/unit) in a cash-out, uncrossed (two loans) refinance of two multifamily properties totaling 81 units in Los Angeles communities, Los Feliz and Burbank, during the COVID-19 pandemic. While in application with accretive terms in February 2020 prior to California’s “stay-at-home” order, the Lender subsequently paused all new loan originations, including its in-process pipeline, mid-way through this transaction. Despite the economic uncertainty during the transaction, as well as the Lender halting all in-process and new loan originations, GSP leveraged the Firm’s collective production and relationship with the Lender to close the loans during the COVID-19 pandemic with loan terms as originally structured. GSP worked diligently to ensure the final economic loan terms matched the agreed-upon LOI terms, including an additional advance to be funded after the eviction moratorium is lifted. Both properties had undergone extensive renovations and upgrades since acquisition and have maintained 95% occupancy throughout 2020 despite COVID-19 regulations in California allowing tenants to defer rent payments.


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