Transaction Overview
GSP successfully placed the acquisition financing for the purchase of a 29 unit multifamily property and a 10 unit asset, both located in Downtown Los Angeles. Both loans are fixed for 5 years at 4.05% and 3.72% respectively, before rolling to an adjustable rate for the remainder of the term. The sale of the larger property was contingent upon the sponsor completing the purchase of a second property at the same time. The loans were provided from two separate capital providers for the same purchaser. Pricing was wider for the 29 unit asset due to the 100 year age and that 28 of the 29 units are singles. Constrained by a 1.25 DCR and 75% of purchase, the recourse loans offer a step-down prepayment, open after the fourth year without penalty.
