Transaction Overview
George Smith Partners successfully placed the debt acquisition of a 16 unit multifamily property in Chicago, Illinois. The assets were developed as two contiguous “For-Sale” condominiums five years ago. The seller purchased the note from the prior construction lender, then foreclosed on the assets. Once on title, the seller repositioned the two buildings, converting them to “For-Rent” properties prior to their sale last week. Historical operating history was very limited although market surveys and an MAI analysis confirmed the supportable demand and Net Cash Flow used for underwriting. GSP reviewed this request as a refinance for the seller prior to asset stabilization, but was introduced to the buyer upon the asset going under contract. GSP’s relationship with the seller assisted in back-filling of this “story deal” and added credibility to satisfying the purchasers’ financing contingency. Terms for the ten-year non-recourse loan are: 75% of purchase, fixed at 4.20% with 30 year amortization.
