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$38,500,000 Bridge Financing for a Two-Property Multifamily Portfolio; Sanford, FL

Rate: One Month CME Term SOFR + 3.60% (0.25% Floor Rate)
Term: 3 Years, Two 12-Month Extensions
Amortization: Full Term Interest-Only
LTV: 80% (As-Is LTV)
LTC: 79%
Prepayment: 15 Months Minimum Interest Period
Loan Fee: 1% Origination Fee, 0.25% Exit Fee
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully placed a $38,500,000 bridge loan for the acquisition and renovation of two multifamily properties located in Sanford, Florida. The two Properties total 260 units and are located across the street from one another. GSP sourced a lender that was able to maximize proceeds at a low rate by crossing the properties with release provisions. The two properties were allocated at different loan amounts for their release provisions. One property is a 1970’s vintage single-story, 120-unit, apartment complex that had an initial loan of $14,150,000. The other property is a 1990’s vintage, two-story, 140-unit, garden-style apartment complex that was allocated at an initial loan amount of $20,800,000. The loan was sized to 79% LTC and includes the portfolio’s capital improvement and renovation budget. The Sponsor intends on renovating approximately 75% of the units within the 3-year loan term.

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    July 6, 2022

    Transaction Description:

    George Smith Partners secured $65,410,000 in proceeds for the acquisition of a 232-unit multifamily property in San Bernardino County. The bridge loan is structured as $63,020,000 at close and $2,390,000 in future funding. The fully-funded proceeds represent 75% LTC. The loan floats at a rate of 30-Day SOFR + 3.20% with a 0.35% floor on SOFR.

    GSP discussed the transaction with over 40 different capital providers and received a wide range of feedback. Many lenders declined due to the Property being constructed in the 1970s. Other lenders provided quotes but were limited to a maximum of 70% LTC ($60,800,000). Several quotes had pricing of SOFR + 4.0%.

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