$5,000,000 Reposition Refinance for Non-Flagged Los Angeles Hotel

Transaction Description: George Smith Partners arranged financing that was structured with three credit facilities for the reposition refinance of an un-flagged hotel. The first credit facility was a recorded First Trust Deed that of $3,500,000 to satisfy the existing lienholder and cover additional partnership debt. Trailing cash flow history required the recordation of a Second Trust Deed from the same capital provider that funded $1,125,000 into a rehabilitation fund for capital upgrades. Additional funds were required to complete the Sponsor’s rehab plan so an unrecorded revolving working capital line for $375,000 was drafted to complete the capital project. Sized to 55% of value, recorded loan proceeds were limited by historical cash flow. The recourse loans are floating over Prime less 0.25% with a 3.75% floor for the 10 year term. The loan may be fixed via a SWAP vehicle at any time during the loan term. There is no prepayment penalty while the loan floats. The credit line revolver is priced at Prime plus 0.5% paid on balances as drawn for the two year term.