$7,750,000 Non-Recourse Bridge-to-Agency Refinance for a 36-Unit Recently Completed Multifamily Building; Tujunga, CA

Transaction Description:

George Smith Partners arranged $7,750,000 in non-recourse financing for the lease-up and stabilization of a newly constructed 36-unit multifamily building located in Tujunga, CA. The Sponsor had just received the Property’s Certificate of Occupancy and wanted to lower the interest rate from the existing construction lender. This financing allows the Sponsor to finish the lease up of the Property, stabilize the asset, and exit the loan with long-term agency financing. The financing was $700,000 more than the construction loan and the extra proceeds were used to pay for cost overruns and build a larger interest reserve required for the slower lease up due to COVID. The Lender will cut their minimum required hold and exit fee after month seven if the Sponsor exits into an Agency loan with the Bridge Lender.

Advisors

• 

  Steve Bram

  Managing Director & Principal / GSP Co-Founder

• 

  Allison Higgins

  Senior Vice President

• 

  David R. Pascale, Jr.

  Senior Vice President

• 

  Nick Rogers

  Vice President

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