GSP arranged the financing for a 117 unit stabilized apartment building in Colorado Springs, Colorado. The Los Angeles based Borrowers required acquisition funds for a recently stabilized apartment building that emerged from receivership in 2010. The Borrowers had a strong multifamily track record in the Los Angeles market, but had not owned rental assets outside of the state prior to this purchase.
Challenge: The Borrowers required that equity investors were excluded from signing as Key Principles in the new loan. Their out-of-state ownership coupled with the lack of signatures from primary investors provided an underwriting challenge.
Solution: GSP proposed a 65% LTV loan to allow passive investors from signing as Key Principals. GSP also demonstrated to the lender that the on-site management company was a leader in the local market and would overcome any challenges for the out-of-state Borrowers.
