Transaction Overview
George Smith Partners secured $13,350,000 of bridge financing for the acquisition and renovation of a an apartment building in West Los Angeles. The building, which was constructed in 1969, is in need of a major renovation. The financing provided 77% of the acquisition and renovation cost. The Sponsor intends to complete an extensive renovation to the exterior and common areas. At acquisition the building was 60% occupied, so the Sponsor will immediately improve the vacant units and rent at market. The loan was sized to a 6.50% stabilized debt yield, which equated to 77% of total project cost. The non-recourse financing has a floating interest rate of LIBOR + 4.75% and has a 3-year term.
