Transaction Overview
Transaction Description_:_ Bryan Shaffer successfully placed the $3,010,000 refinance of a 96-unit apartment community in Oakland’s Central Business District. The current owner recently acquired and renovated the formerly foreclosed property. The asset was the process of stabilization at funding. Project improvements netted a positive impact to the overall neighborhood and is an example of how proper management can improve an entire market. The 7-year term loan is priced at 5.65% fixed with 30 year amortization and a step-down pre-payment penalty.
Challenge: Prior to engaging GSP, the Borrower approached several Fannie Mae DUS lenders who rejected the project. The Borrower also required a return on his investment given the ample value created through the asset reposition.
Solution: GSP identified the community redevelopment institution best positioned to finance this asset and demonstrated the significant contribution of the project to this Oakland district. The lender, an affordable multi-family housing firm, offers unique loan programs that allows for the full stabilization of projects at long term market rates in fulfilling their mission statement. GSP was able to secure a market rate loan with cash-out in excess of 40% of the prior pay-off.
