Transaction Overview
Jason Gaffner successfully negotiated the acquisition financing for a 19 unit multifamily asset in the heart of Korea Town. The new loan is fixed for 5 years at 3.60% before rolling to an adjustable rate for the remainder of the 30 year term. The loan is constrained by a 1.20 DCR and 75% LTC. The seller converted a utility room to a 19th unit but neglected to obtain permits. Loan proceeds were DCR constrained to $1,850,000 without the benefit of the cash flow from the additional unit. GSP was able to maintain the requested loan proceeds by successfully negotiating a $100,000 holdback to be released once the applied-for documentation is furnished by the municipality.
