Transaction Overview
George Smith Partners successfully arranged the acquisition debt for the purchase of a 16 unit multifamily property for a non-US Resident borrower. The 14,400 square foot property was constructed in 1969, and includes controlled access gates, secure parking, laundry facilities and an elevator, while ideally located less than half a mile from Santa Monica Beach and Gold Coast. Our client was coming out of an exchange and went into application with one month to close requiring a “funded as applied for” execution. Liquidity and net worth covenants were structured to address the non-US Residency of the Sponsor. Professional 3rd party property management mitigated the Borrowers’ lack of credit history and out-of-country ownership. Fixed at just under 4.0% for 10 years amortized over 30 years, the loan funded in less than 30 days, meeting the Sponsors’ 1031 requirements.
