Transaction Overview
George Smith Partners secured senior permanent financing for two stabilized multifamily properties in Los Angeles, CA. The two non-crossed loans totaling approximately $26,100,000 were utilized to refinance existing debt and return equity to the Sponsor. Each loan was collateralized by a stabilized multifamily property. The first asset was a 28-unit building that was 100% leased at closing and located in Culver City, CA while the second asset was a 46-unit building that was 97% leased at closing and located in Hollywood, CA. The loans were both structured with a twelve-year term and interest-only payments for the full duration.
GSP secured a lender that was able to refinance the Sponsor’s existing debt, cover prepayment penalties and return equity while simultaneously lowering the Sponsor’s debt service payments for the next twelve years. GSP worked with the Lender to minimize debt service reserves while addressing lender concerns for potential COVID related shortfalls. Cash-out proceeds were secured on both loans despite two COVID related delinquencies. Lastly, the Sponsor was completing a complicated partnership dissolution. GSP insured the Lender accommodated the Sponsor’s timeline with an accelerated no-cost rate-lock and an extended closing period.
