Transaction Overview
GSP successfully placed $2,180,000 in non-recourse permanent financing for a three property multifamily portfolio in the Pacific Southwest. The 75% leverage loan carries a low fixed coupon of 4.45% for the duration of its 10-year term. Cash flow is maximized via three years of interest only payments prior to converting to 30-year amortization. The loan presented significant challenges including a 100% cash-out requirement, sponsorship with credit issues, the property’s workforce housing tenant base, as well as tax and unpermitted work liens clouding title. GSP leveraged its strong lender relationships and emphasized the sponsorship’s length of ownership and its real estate investment track record to ultimately overcome these issues. The loan carries a flexible step-down prepayment penalty offering the ability of early payoff or sale and no lender fee was charged.
