Transaction Overview
George Smith Partners placed the cash-out refinance of a 49 unit, brick, mixed-use apartment and retail building in Hollywood, California. Acquired last year by the Borrower, our Sponsor initiated a significant capital improvement program that repositioned the three ground-floor retail tenants and added other improvements to the 1920s vintage real estate. The turn-around as supported by numerous area comparables justified an earn-out that netted in excess of 100% of costs for the Borrower. Sized to 75% of the appraised value and fixed for 5 years at 3.09%, the 20 year loan will float for the remaining 15 year term at LIBOR + 2.4%. The loan amortizes over 30 years after the initial one year interest only period. Pre-payment penalty steps-down from 5% for this non-recourse loan.
