Transaction Overview
George Smith Partners successfully arranged the $16,500,000 permanent loan for a 328-unit apartment community in Odessa, Texas. The subject was recently constructed and has solid occupancy with strong cash flow. This transaction was the third financing since the beginning of the year between this Borrower and Capital Provider. The Borrower is a significant apartment owner and maintains strong relationships with a variety of institutional lenders including the Agencies, insurance companies and banks. GSP successfully identified a new long-term fixed-rate, non-recourse lender that provides a very competitive interest rate with a refreshingly painless closing process and simple loan documentation. The lender locked rate shortly after application at no additional cost and does not require reserves or impounds, allowing the client to manage their own property. A step-down prepayment penalty and the ability to partially pay-down the loan without penalty was provided at no additional spread to the coupon. Outstanding documentation, a holdover from the construction financing, was mitigated with a personal guarantee that will burn-off once satisfied rather than structuring a financial holdback or a delay of funding. Fixed for 7 years at 3.0%, the self-liquidating loan will reset for a second – 7 year term.
