George Smith Partners placed the non-recourse acquisition debt for the purchase of a 48 unit brick apartment building in the Koreatown neighborhood of Los Angeles. The loan was sized to 65% Loan-to-Purchase, fixed for 5 years at 3.825% before floating for the remainder of the 10 year term at 6 Month LIBOR + 2.40%. Mr. Yazdi was able to secure 3 years of interest only prior to amortizing over 30 years. A step down prepayment penalty exists for only the first 2 years of the loan; 2% in Year 1 and 1% in year 2, and then opens without penalty.
