$36,115,000 Bridge to Perm with Forward Rate Lock for a Four Building Apartment Complex plus Boat Docks

Transaction Description: Steve Bram and David R. Pascale, Jr. successfully placed a uniquely structured Bridge to Perm fixed rate non-recourse loan that provides 100% of renovation costs, reserves, financing costs and all soft costs for this 1972 built complex. Renovation and soft costs are funded as needed in three draws over 18 months with no negative arbitrage. A minimal interest reserve was required because of the existing cash flow serviced the increasing debt load. Once renovation and re-stabilization are completed in 24 months, the loan converts to an 8 year term amortized over 25 years. Interest rate is locked and fixed at 5.0% for the entire 10 year term. Financing is structured to allow one of the four buildings off-line in tandem to renovate, then lease at new market rents while commencing construction on the next building. The complex features a prime Marina Del Rey waterfront location including 10 docks with 209 boat slips. This is a full “life-style” complex: amenities include a swimming pool, spa/sauna, full size basketball courts, tennis courts and a large club house with billiards. Units are larger than comparable newly built comparable units nearby. The extensive rehab includes a gut renovation of the interiors and installation of a new exterior skin with all public areas revamped. Hardscape access to boat docks and bathroom/laundry facilities for the boat docks will be replaced/upgraded. This structure minimized rate risk for the Sponsor by locking in a rate today even though the construction will not be completed for 24 months.