- Rate: 6.75% Fixed
- Term: 3 years + Two 12-month extensions
- Amortization: 24 months interest only; 30-year amortization thereafter
- Loan to Cost: 78%
- Prepayment: 24-month lockout; open thereafter subject to 1.00% exit fee
- Guaranty: Non-recourse
- Lender Fee: 1.00%
Transaction Description: George Smith Partners arranged the $5,200,000 first mortgage on a value-add, 1980’s vintage, Houston multifamily asset during a period of extreme volatility in the energy sector. The non-recourse loan provided the borrower 74% of the purchase price plus 100% of future repositioning costs, with interest not paid on renovation funds until drawn. GSP successfully sourced a national balance sheet bridge lender comfortable with funding a high-leverage bridge loan on workforce housing in Houston, Texas despite oil trading below $30/barrel. The three-year bridge loan is fixed at 6.75% eliminating the need for potentially expensive interest rate hedging.