5 Day Close on 84% Loan to Purchase Price for Multifamily Asset; West Hollywood, CA

Rate: 8.5%
Term: 12 Months
Amortization: Interest only
LTV: 84%
Prepayment: None
Guaranty: Non-Recourse
Lender Fee: 1%

Transaction Description:

George Smith Partners arranged a quick close acquisition bridge loan for an 8-unit property in West Hollywood. The Sponsor approached GSP with a need for 80%+ leverage, which can be tricky with low cap rates and rent control. GSP utilized their experience to arrange a first and second capital provider on the loan. We ensured that the Sponsor would receive his required leverage and guaranteed that he could close on the Property quickly. With this structure the owner can increase rents and stabilize the cashflow. This will allow him in the future to place a much larger permanent loan on the Property at a lower interest rate. Sized to 84% of purchase with no hold back requirement for interest reserve or capital expenditures, the loan carries a 12-month term, interest only payments at 8.5% and no prepayment penalty.

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