$3,155,000 Acquisition and Reposition Financing on 32-Unit Multifamily Property; Salt Lake City, UT

Rate: 4.50%
Term: Seven years fixed (Two years interest only stabilization period converting to five year perm. loan)
Amortization: 24 months interest only, converting to 25 year amortization schedule Max Loan to Purchase Price: 88%
Guaranty: Recourse with burn down at stabilization metrics Lender Fee: 1.00%

Transaction Description:

George Smith Partners arranged the $3,155,000 first mortgage on a 1970’s vintage, 32-unit multifamily light value add property. The national bank lender provided financing at 88% loan to purchase price and 70% loan to stabilized value. The seven year facility was structured as a fixed rate facility with a going in 1.00x DSCR. The loan was structured with two-year’s interest only for the stabilization period then converting to a five year permanent loan. The structure of the loan provided the sponsorship the ability to execute the stabilization of the property while maximizing proceeds and utilizing a fixed rate loan in order to mitigate their interest rate exposure.

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