$41,000,000 Multifamily Acquisition Loan; 75% of Purchase w/Nine Years Interest Only

Transaction Description: George Smith Partners placed the $41,000,000 acquisition debt of a Class A 300 unit multifamily in Colorado Springs, Colorado.  At the time of inspection, only one unit was available for lease. With the US Air Force Academy and Lockheed Martin located in Colorado Springs, employment drivers include a notable concentration of military and military related jobs. Lender concerns over the potential of transitional employee postings was mitigated with a long historical occupancy above 95% and a resident concentration of less than 6% of active duty personnel. Sized to 75% of the purchase price, the full coupon (index + spread) was locked just prior to the run up in Treasuries. Fixed for 12 years at 4.31%, the first nine years of the loan are Interest Only before rolling into a 30 year amortization schedule.  The non-recourse loan carries a yield maintenance prepayment penalty but does allow for future advancements subject to the current LTV and debt coverage constraints.