Transaction Overview
George Smith Partners arranged the $42,500,000 (71% of acquisition) fixed rate portfolio loan for a large 669-Unit Apartment Complex located in Los Angeles. Property Specs: 669 Units, 65 buildings (low rise structures), late 1940s vintage, 40 separate parcels, the majority are 1 and 2 bedroom units. The Property is well located near the new Crenshaw light rail transit line. This acquisition was a unique opportunity, a huge infill parcel that had not traded in 30 years. This asset fits in with Sponsor’s strategy to purchase properties in improving areas with long-term, fixed-rate debt and renovating units at unit turn without the future permanent loan rate risk. Unique Loan Structure Features: (1) Two separate loans to maximize opportunities for future “evergreen” loans; (2) Five separate reverse exchanges allowing Sponsor to structure including tenants in common, master lease structure, etc. This will allow the Sponsor to sell other assets and exchange into the subject property over the next few months; (3) Loan closed in 6 weeks from application on a strict acquisition timeline with massive documentation and “moving parts”. GSP provided financing for over 20 transactions for this Sponsor dating back to 1999.
