Transaction Overview
George Smith Partners arranged $1,495,000 in permanent financing for the acquisition of a stabilized 4-unit multifamily property located in the Beverly Grove area of Los Angeles, CA. GSP was simultaneously helping the Sponsor close on a few multifamily refinances within their portfolio to pull cash out and use as equity for the acquisition of this Property. Although the occupancy at purchase was 100%, rents were below market because the Seller self-managed the Property and there was a need for exterior and interior improvements. The Sponsor wanted to lock in a low rate to allow for more cash flow to be used towards their value-add strategy. The loan represents 70% of the purchase price and was structured as a floating rate 5-year term, with 12 months interest-only. The interest-only period allows for more property cash flow to be used towards building improvements. The loan has no prepayment penalty, allowing for additional flexibility. Despite being on a strict closing deadline, GSP was able to identify a bank lender who could close within 35 days.
