Transaction Overview
GSP arranged the 75% LTC acquisition loan from a regional bank for the purchase of a multi-family property in a tertiary Texas market. The loan is fixed for 5 Years and priced in the low-5% range. The property is 100% leased at slightly below market rents. The main obstacles to overcome were the transaction size, asset quality, and non-local first time multi-family purchaser. GSP was able to identify a local institutional lender who understood the specific sub-market and the asset type. GSP also emphasized the borrower’s experience with other real estate properties and helped the lender realize the benefits of establishing a relationship for future acquisitions. This lender also agreed to allow the borrower to self-manage, netting lower operating expenses and a higher return on investment.
