$7,010,000 Cash-Out Refinance of Multifamily Initially Purchased out of Foreclosure

Transaction Description: George Smith Partners placed the cash-out refinance of a 256 Unit Apartment Community initially purchased out of foreclosure.  Sized to 55% of current value, the non-recourse loan is variable for 7 years at 30 Day LIBOR + 240 without a floor.  Our Sponsors’ all-in rate is 2.83% today.  With the 30 year amortization schedule, the current mortgage constant is 4.95%; equivalent to most all-in coupons in today’s debt market.  Prepayment is 1% of the loan balance after the 1^st year lock-out.  This loan also offers a float to fixed conversion option years two through five where the rate can be fixed at the Sponsors’ discretion.  Despite a large capital improvement need due to the asset age and former ineffective management, there are no lender impounds or capital reserves.