Transaction Overview
George Smith Partners secured a $3,820,000 non-recourse permanent acquisition loan for a 44 unit multifamily property in the greater Seattle area. The loan provided 65% leverage and is fixed at a rate of 4.34% for five years. The seller had owned the property for decades and was operating with expenses much higher than a typical multifamily property. In order to maximize proceeds, GSP provided market expense data and emphasized our Sponsors’ extensive experience operating over 2,000 multifamily units. This helped provide support for expenses more in line with the market. The seller also rented units only through word of mouth and had 5 vacant units. By demonstrating the market vacancy, the lender was able to use market rents for the vacant units in order to maximize proceeds. The lender was also able to provide a short prepay period, giving the borrower flexibility to pay off the loan after just two years.
