$3,780,000 Multi-Family Refinance in a Tertiary Market

Transaction Description:  Shahin Yazdi successfully placed the 70% non-recourse refinance of a 75-unit apartment building located in a tertiary market. Market MSA is less than 200,000 residents. Fixed for 7 years at 3.64%, the 10 year term loan will float over LIBOR the final three years of the term. Pre-payment steps-down from 5%.

Challenge: The sponsor wanted to hedge interest rate risk by obtaining an extended rate-lock prior to loan approval and his current loan opening to pre-payment. A bank-ordered MAI valued the property below the underwritten value.

Solution: GSP negotiated an extended rate lock at no cost the borrower that allowed for a 130 day rate-lock prior to funding. Loan constraints were raised post-appraisal to mitigate the low valuation and maintain necessary proceeds.