$1,980,000 Acquisition Bridge Financing for 20-Unit Multifamily to 80% of Cost

Transaction Description: George Smith Partners sourced the acquisition bridge debt for the purchase and the rehabilitation of a 20 unit multifamily property near Dodger Stadium, in Los Angeles. Sized to 80% of the total capitalization, the loan provided for an initial funding of $1,848,000 with the remaining $132,000 reserved for capital improvements. At the time of funding, the property cash flowed to a 0.7 debt coverage requiring the need for an interest reserve although one was not funded. The capital provider was comfortable with our Sponsor’s business plan and prior track record with similar products and agreed to allow the loan shortfall to be fed monthly out of pocket. Floating at Prime + 0.50% with a 4.50% floor, the 2 year loan is Interest Only. There is no prepayment penalty.