Transaction Overview
George Smith Partners arranged $14,000,000 in cash-out permanent financing,70% LTV for the refinance of a 4-property multifamily portfolio located in Los Angeles, CA. Due to GSP’s vast activity, we were able to time the loans to match up with a special discount program offered by a regional lender. GSP structured the portfolio to maximize the cash-out to the Sponsor at the lowest possible cost. With over $3,000,000 in cash out, the Sponsor still lowered their monthly debt service. GSP was able to arrange a 30-year term with the first 5 years fixed at a rate of 3.15%. The rate will then reset every 5 years for the remainder of the term. The flexible prepayment structure is equal to 1.75% for the first 3 years, 1% for years 4 and 5, and 0% thereafter. The cash-out financing provides the Sponsor with equity allowing them to continue to grow their multifamily portfolio. GSP was able to meet the Sponsor’s deadline and close this transaction within 40 days from signing the term sheet.
