$8,250,000 Non-Recourse Multifamily Acquisition Loan

Description: GSP’s Sponsor required a senior loan for the purchase of a stabilized, 96% occupied, 120-unit apartment complex outside Sacramento, California. The 7 year loan provides 18 months of Interest Only at LIBOR + 250 with no floor before amortizing over 30 years.

Challenge: The Borrower, a fund, required a low interest rate, non-recourse debt and prepayment flexibility. Though the asset is performing well, it’s tertiary location constrained appetite from potential lenders.

Solution: GSP drew on its’ extensive market relationships to identify a Sacramento-based lender with local knowledge of the submarket. GSP demonstrated the institutional buyer’s depth of experience to attain pricing and terms that are typically available only for assets in core market locations.