Transaction Overview
George Smith Partners secured $21,700,000 of bridge financing for the acquisition of a 136-unit multifamily complex in Phoenix, AZ. The Sponsor plans to increase the value of the asset with exterior improvements and interior upgrades as units turn organically. The Property is in the Uptown submarket of Phoenix, which is an up-and-coming area in the Valley that has seen tremendous rent growth in the last few years. Uniquely, there is a disproportionate amount of three-bedroom units compared to one- and two-bedroom units. There is a lack of three-bedroom inventory in the market that the Sponsor believes will help to increase demand at the Property. The non-recourse financing is priced at LIBOR+3.20% and is sized to 70% of total project cost. It carries a three-year initial term and has a yield maintenance period of 15 months.
