California

George Smith Partners successfully placed the $7,500,000 loan to recapitalize a 74-property pool of single family residences leased as rental investments in California, expandable to a Nationwide platform. The renovated single family detached homes must maintain 80% occupancy as a pool. The loan allows for the pool to include multifamily (4+ unit) properties. Challenge: The lender had to complete appraisals for each individual property. Due to the presence of a commercial property within the pool, the lender had to perform an environmental evaluation on the asset. Logistically, placing security interests on each asset in a portfolio of 74 assets presents an arduous task for both the Lender and Borrower. Solution: The Lender streamlined the process by utilizing an Appraiser with offices local to each of the assets. By pooling all assets into two geographically defined LLC’s, the Lender was able to secure its interests in each asset in a relatively simplified manner.