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$7,000,000 Stabilized Senior and Collateralized Line of Credit

Senior
Rate: 4.75% Fixed for Five Years; 6L+270 thereafter
Amortization: 30 due in 30 Years
Fee: Par
Prepayment: 3-3-2-2-1 open
LTV: 60% Blended
DCR: 1.20

Revolver
Rate: Prime
Amortization: Interest Only

George Smith Partners placed the structured senior and collateralized Line of Credit revolver in a cash-out execution for a Hollywood multifamily rental. The two loans are both recorded deeds of trust with the senior loan fixed @ 4.75% for five years prior to rolling into a LIBOR based floater and self-liquidating over the remaining 25 year term. At $4,200,000 there was a small return of equity to the Borrower. A $2,800,000 Second Trust Deed is a true revolver that can be used as a check-book to tie up additional properties in a competitive acquisitions market. Funds may be drawn down, re-paid and re-drawn without additional bank approval. Priced at Prime, the revolver is interest only with interest accruing only on drawn funds. There is no non-utilization fee. As the Credit Line is collateralized, there is no mandatory “clean-up” for funds outstanding over 12 months.

Advisors

Related Financings

  • Cash-Out Refinance of a 16-Unit Multifamily Property; 3.1% Fixed; 70% LTV; Los Angeles, CA

    May 18, 2022

    Transaction Description:

    George Smith Partners arranged permanent financing for a 16-unit multifamily property located in Los Angeles, CA. The loan is fixed at a rate of 3.1% for 5 years and has 3 years of interest-only payments. The deal went into application several months ago when interest rates were 100 basis points lower. Because of GSP’s strong relationship with the Lender, the original terms were held in an increasing rate environment. The financing does not require any deposit relationship with the bank.

    Rate: 3.10%
    Term: 10 Years, Fixed for first 5 Years
    Amortization: 3 years Interest-Only
    LTV: 70%
    Prepayment: 3, 2, 1, 1, 1%

  • $7,600,000 Cash-Out Refinance of a 30-Unit Multifamily Property at 3.5% – 80% LTV; Los Angeles, CA

    May 11, 2022

    Transaction Description:

    George Smith Partners arranged $7,600,000 in permanent financing for the refinance of a 30-unit multifamily loan located in Los Angeles, CA. Due to GSP’s strong relationship with this Lender, we were offered a special bucket of low-cost capital for select sponsors. GSP was able to connect our long-term client’s property to the lower cost capital. The Sponsor recently completed building improvements including unit renovations, new foundation, new structural beams, and system upgrades. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 7-year term, fixed at a rate of 3.5%. The financing represents 80% loan to value with a minimum 1.20 DSCR. The flexible stepdown prepayment structure is equal to 2% in Year 1, 1% in Year 2, and 0% thereafter. The cash-out loan allows the Sponsor to use more equity towards continuing to grow their multifamily portfolio. Thanks to our long-standing relationship with this Community Development Lender, GSP was able to meet the Sponsor’s deadline and close this transaction within 45 days from signing the term sheet.

    Rate: 3.50%
    Term: 7 Years
    LTV: 80%
    Prepayment: 2,1,0

  • $2,083,000 Cash-Out Refinance of a 44 Unit-Multifamily Property; Dallas-Fort Worth, TX

    April 20, 2022

    Transaction Description:

    George Smith Partners secured a $2,083,000 agency loan for the cash-out refinance of a stabilized 44-unit multifamily property located in Dallas-Fort Worth, TX. GSP used its relationship with a capital provider whom we had closed multiple loans with. This lender recently closed a similar loan in this market. They understood the market and felt comfortable with the market characteristics. The Sponsor recently completed exterior and interior renovations including common area upgrades. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 7-year term and a flexible prepayment structure equal to 5%, 5%, 4%, 4%, 3%, 2%, 1%. The loan structure allows the Sponsor to refinance out of an expensive loan with a fixed rate of 3.38%, while also receiving cash out. The Sponsor is using cash-out proceeds to continue their business plan of purchasing and renovating additional properties. Thanks to our long-standing relationship with this Lender, GSP was able to meet the Sponsors deadline and close this transaction within 60 days from signing the term sheet.

    Rate: 3.38%
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  • $15,100,000 Cash-Out Refinance of a 5-Property Multifamily Portfolio at 3.40% – 70% LTV; Los Angeles, CA

    April 11, 2022

    Transaction Description:

    George Smith Partners arranged $15,100,000 in permanent financing for the refinance of a 5-property multifamily portfolio located in Los Angeles, CA. Using GSP’s vast network of relationships, we were able to source and quickly lock fixed rate financing in a market that is seeing rising interest rates. The Sponsor also wanted to pull cash out of their existing multifamily portfolio to use as equity towards purchasing new properties. The Sponsor had recently completed exterior and interior renovations including common area upgrades to all five properties. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 30-year term, with the first 5 years being fixed at a rate of 3.40%. The loan represents 70% loan to value with a minimum 1.20 DSCR. The flexible stepdown prepayment structure is equal to 5,4,3,2,1. The cash-out loan allows the Sponsor to use more equity towards growing their multifamily portfolio. Thanks to GSP’s long-standing relationship with this bank lender, we were able to meet the Sponsors deadline and close this transaction within 35 days from signing the term sheet.

    Rate: 3.40%
    Term: 30 years term, fixed for first 5 years
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  • 4,450,000 Cash Out Refinance Loan For 37-Unit Multifamily Property in Los Angeles, CA; 7 Years Fixed at 3.40%; 5 Years Interest Only Payments

    April 6, 2022

    Transaction Description:

    George Smith Partners arranged $4,450,000 in financing for the refinance of a stabilized 37-unit mixed use property located in Los Angeles, California. The loan is fixed at a rate of 3.40% for 7 years. The new financing is a takeout of the acquisition loan that GSP closed five years earlier. Over the course of their ownership, the Sponsor performed a renovation of the Property and substantially increased the net operating income. As a result, the new loan provided a significant return of equity. The Lender held the rate of 3.40% even though interest rates increased while the loan was in application. Full credit was given for the income from two ground floor retail tenants. The loan has 5 years of interest-only payments.

    Rate: Fixed at 3.40% for 7 years
    Term: 7 years
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    Prepayment Penalty: 5,4,3,2,1%
    Guaranty: Non-Recourse

  • $14,000,000 Cash-Out Refinance of a 4-Property Multifamily Portfolio at 3.15%,70% LTV; Los Angeles, CA

    November 10, 2021

    Transaction Description:

    George Smith Partners arranged $14,000,000 in cash-out permanent financing,70% LTV for the refinance of a 4-property multifamily portfolio located in Los Angeles, CA. Due to GSP’s vast activity, we were able to time the loans to match up with a special discount program offered by a regional lender. GSP structured the portfolio to maximize the cash-out to the Sponsor at the lowest possible cost. With over $3,000,000 in cash out, the Sponsor still lowered their monthly debt service. GSP was able to arrange a 30-year term with the first 5 years fixed at a rate of 3.15%. The rate will then reset every 5 years for the remainder of the term. The flexible prepayment structure is equal to 1.75% for the first 3 years, 1% for years 4 and 5, and 0% thereafter. The cash-out financing provides the Sponsor with equity allowing them to continue to grow their multifamily portfolio. GSP was able to meet the Sponsor’s deadline and close this transaction within 40 days from signing the term sheet.

    Rate: 3.15%
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    LTV: 70%
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