Transaction Overview
George Smith Partners sourced a $5,100,000 loan for the refinance of a stabilized 20-unit property in West Los Angeles. The loan provided 65% leverage and is fixed at a rate of 3.15% for 3 years. The Borrower had achieved their value-add business plan and was able to get significant cash out from the refinance. Net operating income was underwritten at the actual note rate, which resulted in higher proceeds compared to other lenders. The rate of 3.15% was very competitive for a loan that provided full proceeds of 65% LTV. The declining prepay will allow the Borrower flexibility to sell or refinance again depending on market conditions.
