Jason Gaffner successfully arranged debt financing for the purchase of a 26 unit multifamily property located in the Palms section Los Angeles. Fixed for 5 years at 3.23%, the loan will then float for the remainder of the 30 year term – there is no balloon. The loan was constrained by a 1.15 DCR. The whole coupon was locked at application to mitigate interest rate risk tied to the volatile treasury market. The non-recourse loan allows for a step-down pre-payment penalty from 3% and opens without penalty after the third year of the five year fixed term.
