Transaction Overview
J.Jay Brooks successfully arranged an $11,000,000 permanent refinance loan for a 184-unit apartment property in Anchorage, Alaska. The property is fully stabilized and now has solid occupancy and strong cash flow post acquisition and completion of a property improvement plan. This was the second financing this year for the Sponsor and this on-book capital provider. As a national apartment owner, the Borrower has strong relationships with a variety of institutional lenders including agencies, insurance companies and banks. GSP successfully identified a new long-term fixed-rate portfolio lender that provided a very competitive non-recourse interest rate with a refreshingly painless closing process and simple loan documentation. The bank locked rate shortly after application at no additional cost. This lender also provided a step-down prepayment penalty and the ability to partially pay down the loan without penalty during the term of the loan. Our Sponsor commented on how refreshing and painless it was to work with an “old school” lender that did not try to micro manage the borrower’s management through loan documents. There are no impounds or reserves. Fixed at 3.0% for 7 years, the non-recourse loan was sized to 50% of value for the 14 year term. Prepayment steps down from 5.0%.
