$7,500,000 Refinance of 88-unit Apartment w/ 90 day rate lock

Transaction Description: George Smith Partners successfully arranged the refinance of an 88-unit apartment building in a tertiary Southern California market. This loan was used to repay the existing debt, pay off a small prepayment penalty, and cover all closing costs. Fixed for 10 years at 3.25%, prepayment is structured as a yield maintenance calculation. This Capital Provider offered a 90 day rate lock with no additional charge and when the 10 Year Treasury Yield surged 73 basis points, our Sponsor saved $500,000 in potential interest costs throughout the life of the loan. The guarantee was structured as a top level 20% recourse.