$60,100,000 Cash-Out Permanent Financing on a Newly Constructed 235-Unit Mixed-Use Apartment Community; St. Louis City, Missouri

Rate: Blended to 4.89%, Fixed (3.86% on senior debt; 10% on mezzanine debt)
Term: Ten years
Amortization: Ten years interest only
LTV: 82%
Prepayment: Defeasance
Guaranty: Non-recourse
Lender Fee: None

Transaction Description:

George Smith Partners successfully placed $60,100,000 in permanent debt to take out a construction loan and fund the buyout of a major equity partner on a newly built, mixed-use property located in the trendy St. Louis City neighborhood of The Grove. The 82% leverage loan is a combination of a $50,000,000 non-recourse senior loan to 70% loan-to-value and a $10,100,000 non-recourse mezzanine loan to 82% loan-to-value with a blended fixed-rate coupon of 4.89% for the duration of the ten-year term. The financing provided significant cash out to the Borrower that allowed both the buyout of a major equity partner as well as substantial cash-out above what was needed for the partnership buyout. Additionally, the financing structure replaced a recourse construction loan with a non-recourse, fixed-rate permanent loan with full-term interest only to maximize cash flow. GSP leveraged its expertise of the St. Louis market, long-standing lender relationships, and capital markets creativity to achieve the Borrower’s goals.

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