Transaction Overview
George Smith Partners arranged $4,410,000 in quick-close, acquisition bridge financing for a 17-unit, 1960s built, value-add multifamily project in Glendale, California. The Sponsor approached GSP with an extremely tight closing time frame due to a reverse 1031 exchange. He valued certainty of execution above all else so he could close on the Property in short order. The Sponsor will use his own equity to renovate the Property. GSP identified two, non-bank lenders with a long history of providing quick close, bridge execution. The first trust deed is sized to 60% of purchase with no hold back requirement for interest reserve or capital expenditures. GSP also sourced a second trust deed up to 90% of purchase price. Both loans were non-recourse, interest only, and do not carry prepayment penalties. The Sponsor plans to take out the two loans within 12 months with agency or long-term fixed rate debt.
