$9,650,000 Purchase of 95-Unit Seattle Multifamily Property; Sized to 1.15 DCR on an Actual Mortgage Constant; 68% LTV

Rate: 4.5% fixed for 5 years, then floating at 6M LIBOR + 3.25%
Term: 15 years
Amortization: 3 years Interest Only followed by 30 year amortization
Prepayment Penalty: 3,2,1,0
LTV: 68%
DCR: 1.15x
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners secured $9,650,000 in proceeds for the purchase of a 95-unit multifamily property located near Seattle. Proceeds were maximized by using a 1.15x Debt Coverage Ratio on the actual mortgage constant. The Seller’s historical P&Ls included many corporate and non-recurring expenses. GSP was able to separate out these expenses using the Seller’s general ledgers. Additionally, our team demonstrated the Sponsor’s successful track record bringing operating expenses in line with typical multifamily properties. As a result, the selected Lender was able to underwrite to a normalized expense ratio and provide 68% LTV on the purchase. Fixed at 4.50% for five years, the first three years are interest only before rolling into a 30 year amortization schedule for the 15 year term loan. The loan closed in about 45 days.

Advisors

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