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$34,000,000 Dallas Multifamily Acquisition Fixed at 5.15% w/Full Term Interest Only

Rate: 5.15% fixed
Term: 10 years
Amortization: 10 years Interest Only
Prepayment Penalty: Defeasance
LTV: 65%
DCR: 1.4x
Debt Yield: 7.75%

Transaction Description:

George Smith Partners secured a $34,000,000 permanent loan for the acquisition of a 273 unit Class A multifamily property in Dallas, TX. The 10 year loan is priced at 5.15% and fixed for ten years, with full term interest only. The Borrower executed their purchase and sale agreement in October 2018 as part of a 1031 exchange. While in due diligence the cash flow declined due largely to new construction coming on-line. In addition property taxes were re-assessed at a higher rate. GSP worked with the lender as well as the rating agencies to demonstrate the historical occupancy (95%+) and mitigate the loss in net cash flow from the rise in operating costs. The borrower was able to rate lock at an all-in rate less than applied for, with full proceeds, during the last week of 2018. The transaction closed once business commenced in full in 2019.


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