Transaction Overview
GSP arranged the $7,200,000 first mortgage on a value-add Denver multifamily asset built in 1972, representing up to 70% of the current value plus 70% of reposition costs. The L+265 interest rate (2.80% all-in today) requires a rate cap at a 3.0% strike price for the first two years of the term with a required renewal for year three, thereby reducing the overall cap cost to the Borrower by shortening the cap’s duration. The three year term is Interest-Only for the first 30 months and requires principal and interest payments at a 30 year amortization schedule for the final six months of the term. With no repayment guarantee, carve-out guaranties are limited to a capitalized entity.
