Transaction Overview
GSP successfully sourced the $15,000,000 non-recourse acquisition loan for a 118-unit, Class-A apartment community located in a suburban community outside Seattle, Washington. The 75% loan-to-purchase, ten-year loan is fixed for five years at 3.625% with three years of interest only payments. The loan converts to a floating rate structure during the sixth year for the remaining ten year term at LIBOR + 2.40%. Our portfolio Capital provider did not charge an origination fee or require a cash management account, impounds or replacement reserves, which minimized upfront deposits and provides maximum flexibility for the duration of the loan. Stepping down from 2%, the loan is pre-payable with a favorable penalty structure and is open after the 2nd year without penalty.
