Transaction Overview
successfully arranged the $11,600,000 cash-out refinance for a 147-unit apartment property in Anchorage, Alaska. The property has solid occupancy and strong historical cash flow however it has a large military concentration. The Borrower, a prominent apartment owner, executed numerous Agency loans during his development career. GSP successfully introduced a new portfolio capital relationship capable of executing long-term fixed rate non-recourse debt. Rates and other terms were superior to Agency terms with a substantially smaller processing checklist. An early rate lock was executed shortly after application with no additional spread premium. There are no capital reserves or tax/insurance impounds. A step-down prepayment is underwritten with the last two years open without penalty. Our Sponsor remarked how “refreshing and painless it was to work with an “old school” lender that does not try to micro manage the asset through the loan docs”. Fixed for 10 years at 3.55% and amortized over 20 years, the non-recourse loan was sized to the requested 65% LTV.
