Transaction Overview
George Smith Partners placed the structured senior and collateralized Line of Credit revolver in a cash-out execution for a Hollywood multifamily rental. The two loans are both recorded deeds of trust with the senior loan fixed @ 4.75% for five years prior to rolling into a LIBOR based floater and self-liquidating over the remaining 25 year term. At $4,200,000 there was a small return of equity to the Borrower. A $2,800,000 Second Trust Deed is a true revolver that can be used as a check-book to tie up additional properties in a competitive acquisitions market. Funds may be drawn down, re-paid and re-drawn without additional bank approval. Priced at Prime, the revolver is interest only with interest accruing only on drawn funds. There is no non-utilization fee. As the Credit Line is collateralized, there is no mandatory “clean-up” for funds outstanding over 12 months.
