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$4,300,000 Acquisition/Bridge Loan for 18-Unit, Multifamily Property; Long Beach, CA

Building

Rate: Prime + .50% with 4.00% Floor
Term: 3 Years
Amortization: 18 Months Interest Only
Loan-to-Cost: 73%
Prepayment: Open Prepay
Loan Fee: 0.5% in / No exit fee

Transaction Description:

George Smith Partners arranged $4,300,000 in acquisition bridge financing for the purchase and reposition of an 18-unit multifamily property located in Long Beach, CA. The Sponsor put the Property under contract during the COVID-19 pandemic. The Property has several vacant units which represents an opportunity for the Sponsor to immediately add value and commence their value-add business plan.

The loan includes future funding for an extensive renovation of unit interiors and an exterior upgrade. The three-year bridge loan is interest only for the first 18 months and carries a floating rate of Prime + 0.50% with a 4.00% floor. Interest is not charged on the holdback until funds are drawn. The lender fee was limited to a 0.50% origination fee with no exit fee. The loan structure has no prepayment penalty, providing the Sponsor with ultimate flexibility.

Advisors

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