Transaction Overview
George Smith Partners successfully placed both the bridge debt financing and equity placement on a 107-unit, high-rise apartment acquisition and rehabilitation in Denver. The Property represents a one-of-a-kind opportunity in this market, but requires extensive renovations to reposition the asset to a Class A property. Loan proceeds not only funded the acquisition, but will allow the Sponsor to renovate the building’s units and common area spaces.The transaction required an extremely quick close. The project proforma underwriting includes a 25% rent increase over the property’s in-place collections as existing rents are below market, and the business paln includes a large value add component. GSP was able to fully underwrite market rents, and verified appropriate comparable properties to expedite the process. GSP’s extensive capital relationships allowed us to identify debt and equity sources that had successfully executed together in the past and were able to underwrite and fund in a three-week period.
