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$29,000,000 Bridge Financing for a 95-Unit Multifamily Project; Bozeman, MT

Rate: Floating at 1 Month CME Term SOFR + 3.65% (dropping to 3.50% at stabilization)
Term: 2+1+1
Amortization: Interest Only
Minimum Interest: 6 months
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners (GSP) secured $29,000,000 of bridge financing proceeds for a multifamily project in Bozeman, MT. The project is a newly constructed multifamily property totaling 95 units across 2 buildings and is currently in lease-up. At loan application, only 1 of 2 buildings had received their Certificate of Occupancy and was less than 10% leased. The project also included a small commercial space that was unleased at loan application.

Given GSP’s extensive experience in the Montana submarkets, coupled with the borrower’s track record, a total of 9 lender groups showed interest and participated in providing loan terms. GSP was able to overcome Bozeman’s small submarket challenges by identifying relevant comps and highlighting leasing velocity at the property. By the closing date, the property was over 35% leased.

The new bridge loan proceeds were used to repay the more expensive construction loan and provide sufficient reserves to carry the project through lease up and permanent refinancing. The loan request of $29,000,000 represents an as-is loan-to-value of 70%.


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