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$3,200,000 Cash-Out Refinance for a Multifamily Property Still Under Renovation; Larchmont, CA

Rate: Prime + 0.5% (5.25% today)
Term: 5 Years
Amortization: 18 months interest only followed by 30-year amortization
LTV: 70%
Prepayment Penalty: None
Guaranty: Recourse

George Smith Partners placed a $3,200,000 cash-out refinance on a multifamily property in the trendy Larchmont submarket of Los Angeles, CA. The Property was a recent acquisition and still undergoing renovations as part of a value-added strategy. Despite this, GSP was able to source a bank lender offering a mini-permanent loan structure that met the Sponsor’s request for cash-out proceeds to re-invest in new development deals. Although the loan included a 12-month interest reserve a holdback for the remaining construction budget was not required. The financing was sized to 70% LTV and carries a rate of Prime + 0.5% (5.25% today). The loan carries a 5-year term and is interest only the first 18 months followed by a 30-year amortization.

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