$6,170,000 Cash-Out Refinance to 75% LTV

George Smith Partners secured $6,170,000 in proceeds for the cash-out refinance of a 48-unit multi-family property in Hollywood. Our Sponsor purchased the brick building in 2012 and has since renovated several units and released them at market rent. A wireless provider also leased space on the rooftop and a unit for their equipment. A 30 day right to cancel these leases was mitigated with a market-rate underwriting of the wireless provider’s above-market rents. Since our Sponsor had dramatically improved the financial performance of the property over the past four years, the loan proceeds were able to provide a return of equity as well as a significant return on equity. Fixed for 10 Years at 3.78%, the loan was sized to 75% of current value with little consideration given to the initial capitalization. The loan provides for 3 years of interest only before amortizing over 27 years for the remaining 12 year term; and steps down from 5% with no prepayment penalty after the fifth year.