California

George Smith Partners successfully placed the cash-out refinance for a 10 unit multifamily property located in the Silverlake area of Los Angeles, California, half a mile from Sunset Junction. The subject property was acquired in 2012 for $900,000 with significant deferred maintenance and underperforming rents. After acquisition, the Sponsor embarked on an extensive phased renovation, bringing the total cost basis to $1,700,000. The Sponsor fully leased the Property to market rents, creating substantial value that they wished to capture in a permanent refinance. GSP identified a Lender that funded 65% of the current value despite the actual cash basis. This financing allowed 100% return of equity to the Sponsor while retaining a strong cash-flowing asset. Fixed at 4.14% for 10 years, the non-recourse loan is interest-only for the entire term.