Transaction Overview
George Smith Partners arranged the $10,000,000 permanent acquisition loan for a large apartment complex in Bakersfield, California. As the new Sponsor intends to significantly renovate units upon lease roll, GSP was able to structure a loan that yielded nearly 100% of the purchase price, but 80% of the total projected capitalization. Despite the rehab business plan, the lender was still confident to structure a long-term fixed rate permanent loan with a 15 year term, amortized over 30 years. Sized to 68% of improved value but 80% of the total cost, the 15 year fixed rate loan priced at 4.64%.
