Transaction Overview
George Smith Partners secured the $1,820,000 acquisition bridge loan to purchase a 15-unit multifamily property in Los Angeles. Proceeds were constrained by a below market, in-place income. GSP sourced a Capital Provider who provided full proceeds and pricing that resulted in a below break-even going-in DCR of 0.8x. Lender required a 6-month interest reserve until property reached a DCR of 1.25. Sized to 70% of cost, the floating rate loan was priced at Prime +0.5%, adjusting daily for 2 years and is interest only for 2 years with no prepayment penalty.
