Transaction Overview
George Smith Partners arranged $1,036,000 in permanent financing for the acquisition of a stabilized 9-unit multifamily property located in Los Angeles, CA. Simultaneously, GSP was helping the Sponsor close on a few multifamily refinances within their portfolio to pull cash out and use as equity for the Subject Property. Although the Property is currently 100% occupied, rents were below market because the Seller self-managed and the Property needs exterior and interior improvements. The Sponsor wanted to lock-in a low rate to allow for additional cashflow to be used towards building upgrades. Despite being on a strict closing deadline, GSP was able to identify a bank lender who could close within 45 days. The loan represents 70% of the purchase price and was structured with the first 5 years being fixed at 3.25%, while resetting every 5 years for the rest of the 30-year term. The loan structure also allows for flexible prepayment with the first 3 years being equal to 1.75% and 1% thereafter.
