George Smith Partners structured the cash-out refinance of a 40 Unit apartment building in the Mid-Wilshire/Koreatown area of Los Angeles. This asset was acquired by the Borrower less than 18 months prior to this refinance that netted a return of as well as a small return on cash equity. Our Sponsor qualified for this level of capitalization due to the extensive rehabilitation project completed and the re-tenanting of the subject at current market rents. Sized to 75% of the now stabilized value, the 20 year loan is fixed for 5 years at 3.57% and floats at LIBOR + 275 for the remaining 15 years. The loan will amortize over 30 years after the initial 1 year of Interest Only payments. A step-down prepayment from 3.0% opens at par after the fifth year.
