Washington

Shahin Yazdi successfully refinanced the debt on four low-income housing buildings throughout various tertiary and secondary markets in Washington State. The non-recourse senior loans were cross-collateralized with release provisions. Sized to 75% of value, the ten-year term loan was fixed at 2.30% over the 10-Year Swap Rate. This funding represents a significant return of equity to the Borrower. Challenge: The Key Principal had several prior and existing tax liens and required a significant return of equity to cover these and other non-asset related expenses. Capital items had not been upgraded for several years and the property suffered from deferred maintenance. The Borrower held dated third party reports in HUD form from a failed application prior to engaging GSP, and requested they be utilized on the new application. Limited liquidity was available for the full deposit necessary to start the application process. Solution: GSP mitigated the Key Principal’s credit issues by documenting a perfect mortgage and installment credit history. All tax liens were satisfied through escrow and impounds are required going forward. A capital reserve was held from a portion of the loan proceeds to renovate and update all deferred capital items. The lender agreed to use the existing reports once necessary edits were made to comply with the lenders requirements. The bank agreed to accept the deposit in two payments so due diligence could be initiated while giving the borrower an adequate amount of time to raise the additional funds needed for processing, commitment and closing.