Rate: 4.37%
Term: 12 Years
Amort: 30 Years
DCR: 1.25
Non-recourse
Lender Fee: 1%
Transaction Description: George Smith Partners successfully placed the $4,815,000 cash-out refinance on a 108 unit senior multi-family apartment complex, which has been owned by the sponsors for 10 years. The property was built in 2000 and shows well in this Pacific Southwest market. It is currently 97% occupied, thus qualifying for a significant return of capital to the Sponsor. The 4.37% non-recourse loan is fixed for 12 years and sized to 65% LTV over a 30 year amortization schedule. The 12 year fixed loan allowed lender to underwrite on the actual loan constant instead of an artificial underwriting constant. This innovative structure allowed for more loan proceeds.
Advisors
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Steve Bram
Managing Director & Principal / GSP Co-Founder
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David R. Pascale, Jr.
Senior Vice President
Related Financings
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$8,000,000 Assisted-Living Acquisition & Reposition Loan
April 10, 2014
4 – 9 – 14 Transaction Description: Shahin Yazdi successfully placed the 65% loan to cost for the acquisition and reposition of an un-stabilized assisted living facility. With occupancy at 70%, this West Coast asset operated below break-even coverage, requiring an interest reserve to cover the debt service short. The loan has a 10 Year term and is fixed for the first two years at 6.25% before floating at 2.25% over Prime. The Borrower may elect to choose a fixed option of the 5 year CMT + 4.25% in place of the Prime floater after the second year. Challenge: Physical occupancy was 70% at application with a 68% economic T-12 (trailing-12 month cash flow). Net income covered operating costs but was significantly below break-even at close. The Borrower required a limited recourse guarantee with a burn-down upon stabilization. Solution: Borrower experience with assisted living facilities was highlighted with a business plan from a sponsor who has repositioned similar products in the past. Market occupancy was considerably higher than historical operations. An interest reserve was structured to obtain a 1.0 dcr until stabilization. Market occupancy and Sponsor experienced gave comfort to the credit officer, allowing for a limited repayment guarantee (top 50%) to burn-down as various cash flow hurtles are obtained on a T-6 basis. Rate: 6.25% Term: 10 Years Amort: 2 Years IO then 23 Years LTC: 65% Prepayment: 3,3,3,2,1 open Recourse: Limited to top 50% burning off at stabilization. Advisor: Shahin Yazdi -
$14,000,000 Ground-Up Construction-to-Perm of a To-Be-Built Assisted Living Facility
September 20, 2012
9 – 19 – 12 Transaction Description: GSP successfully placed the $14,000,000 construction-to-permanent loan for a to-be-built Assisted Living Facility in Sacramento, California. The recourse construction facility is for eighteen months, interest only with the takeout underwritten and in place prior to construction funding. The permanent take-out loan is priced at SWAPs + 350 with a 6.0% floor, fixed for ten years, amortized over 25 years. The loan will be rate-locked at Certificate of Occupancy once rolled into the perm loan, sized to 70% of total construction costs. While this particular funded facility is for assisted living (considered seniors housing), GSP received significant interest from capital providers for construction financing across all asset classes as well. For National Investment Center Convention attendees, please touch base with Mr. Orchard via cell phone @ (310) 309-7005. Steve will be attending the Seniors Housing Conference in Chicago through its conclusion on Friday. Term: 18 Month Construction; 10 Year Perm Amort: 18 Months IO; 25 Years LTC: 70% Recourse Brokers: Steven Orchard, Michelle Lee
