$8,800,000 Bridge Financing on a 92-Unit Multifamily Los Angeles Property

Transaction Description:  GSP successfully obtained an $8,800,000 cash-out bridge-to-agency loan secured by a stable infill 92-unit multifamily property in 18 calendar days from application to close. During the closing process, GSP and the Sponsor worked closely with the lender to resolve hurdles related to three estate liens, several unpermitted units, and incomplete historical operating history.

Challenge: The borrower required a cash-out refinance in order to procure proceeds for the acquisition of an unrelated asset with a pending close date, 18 days after entering in to application. During that time, the lender and client had to address three IRS liens and three unpermitted units. Additionally, a mid-year change in property management clouded the reconciliation of historical operating statements.

Solution: GSP capitalized on its’ strong network of lender relationships to secure a bridge-to-agency loan that maximized proceeds at a reasonable rate within the 18 day requirement. GSP worked with the lender and third party vendors in order to expedite all third party reports within 10 days, remove two estate liens and structure around a third IRS lien. GSP and the client also provided sufficient data to assist the lender in reconciling operating expenses and prove their ongoing viability. The bridge loan will be replaced with permanent agency financing within 90 days.