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$6,650,000 Perm Financing for Single Family and Multifamily with ADU/JADU Portfolio; North Hollywood, CA

Rate: 4.05% Fixed for 10 years
Min DSCR: 1.15:1.0
Loan Fee: 1%
Term: 10 Years
Amortization: 30 years
Recourse: Recourse
Prepayment: Yield maintenance

Transaction Description:

George Smith Partners secured three separate loans totaling $6,650,000 for the permanent financing of a portfolio of three properties/15 units in North Hollywood, CA. The Properties were acquired-entitled and developed by the Sponsor to include a combination of multifamily, single-family-detached with ADUs and JADUs. The Properties are located within proximity to each other and were in various stages of lease-up and stabilization at the time of the financing.

The recourse loan refinanced both equity and construction debt with perm financing with a total term of 10 years. The three separate loans represent 70% loan to stabilized value with a minimum 1.15:1.0 DSCR. The loan allows for open prepayment with yield maintenance.

The Sponsor’s business plan provides for much needed housing and increased density developed under the AB-68 Land Use Act for Accessory Dwelling Units passed by Governor Newsom and the State of California in October 2019. GSP was able to secure a lender that was comfortable with the collateral which required varying ownership structures including a land trust as required for JADUs.

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