Transaction Overview
George Smith Partners secured the $7,675,000 non-recourse acquisition loan for the purchase of a 132 unit multifamily project located in San Antonio, Texas. Located in the Alamo Heights neighborhood, the initial funding was 80% of the purchase price and 100% of the renovation budget. This transaction represented a notable value-add opportunity that will allow the property’s rental rates to be reset, matching similarly upgraded properties in the area ranging from $1.03 to $1.25 psf. Renovation is anticipated to cost in excess of $7,500 per unit in addition to a $500,000 budget for common areas. Priced at LIBOR plus 4.75%, the three year interest only term is floored at 5.25%. The Borrower may prepay the loan without penalty or premium during the 18 months prior to the maturity date.
