$4,500,000 to 75% LTC on a Class C Multifamily

Transaction Description:  Bryan Shaffer successfully placed the $4,500,000 acquisition of a Class C Multifamily Apartment project in Tulsa, Oklahoma. The Sponsor was seeking maximum loan proceeds which were constrained to 75% of the purchase price. The non-recourse 5 year loan is fixed at 4.55% with a 30 year amortization schedule. The lender agreed to allow the Sponsor to place future secondary debt on the property as its value increases.

Challenge: The property was under-managed by the seller who only maintained an 85% occupancy in a 7% vacant market. Criminal activity was also present and the property suffered from cosmetic and deferred maintenance.

Solution: Despite issues with current management and the below market occupancy rate, GSP demonstrated the Sponsors’ capacity to correct management and operate the property correctly. These measures allow us to secure long-termed institutional debt to 75% of current value as opposed to the hard money alternative that was initially contemplated by the Sponsor.