Transaction Overview
George Smith Partners arranged $12,122,000 of non-recourse, acquisition and renovation financing for a 281-unit multifamily apartment in Jacksonville, Florida. Constructed in 1975, the property consists of 35, two-story, garden-style residential buildings with an average unit size of 728 square feet. Our Sponsor purchased the property to bring rents to market by renovating 211 units and investing in deferred maintenance, common areas, and additional amenities. GSP identified a capital provider comfortable with the Sponsor’s experience, the organizational structure, which included crowd funding and the property management team’s local expertise. During due diligence, it was discovered that the aluminum wiring may have been installed improperly so GSP sourced and worked with a licensed electrician to certify a past electrician’s work. Sized to 75% of purchase, the fixed rate permanent loan was locked at 4.47% for 12 years. The loan will amortize over 30 years after three years of interest only.
