Transaction Overview
GSP arranged the $14,400,000 First Trust Deed for the purchase of an age-restricted Huntington Beach multifamily asset built in 1987. The loan represented 66% of purchase price plus 100% of anticipated reposition costs. The repayment guarantee limited to the top 25%, burns down to a non-recourse loan upon completion of budgeted renovations and achievement of a 1.20x debt service coverage ratio. 100% of the reposition costs will be financed, funded by the capital provider through future draw requests. The coastal Orange County asset was purchased for $19,000,000 ($166,667 per unit) and has a unit mix of 3% studios, 87% one-bedroom units, and 10% two-bedroom units. The LIBOR based floating rate loan does not amortize or carry a prepayment penalty.
