Texas

George Smith Partners successfully structured the 70% loan-to-cost non-recourse acquisition bridge financing on a significantly under-managed 2000 vintage mid-rise multifamily property in Dallas, Texas. The under-managed property was trailing market rents by 20% at acquisition resulting in a debt yield below 6% on in-place income. The Sponsor’s business plan is to recapture the loss to lease, implement a capital improvement plan including washer/dryer installation to enhance unit interiors, and upgrade the lobby, common areas, amenities and exterior to meet the market’s discerning taste. Floating at 375 over LIBOR, this non-recourse loan is Interest-Only for five years (including options) and was sized to 70% of total cost. A portion of the loan proceeds will be used to finance the interior and exterior upgrades, with interest not paid until funds are drawn.