Transaction Overview
George Smith Partners successfully placed acquisition and bridge loan for a 150 unit garden community apartment complex in Northwest San Antonio. This loan represents 85% of the total capitalization. Located near two of San Antonio’s largest employment centers, planned renovations will approximate $14,000 per unit for common area and unit interiors. Renovations will allow sponsors to raise rents approximately $0.25 per square foot over the next two years. This is the third financing arranged by GSP with this Sponsor in San Antonio since April. GSP worked with the lender in negotiating a customized LIBOR cap structure to control closing costs and provide adequate protections for both Borrower and Lender. The six available floor plan types are spacious and over 55% of the units are two and three bedroom. The complex also features swimming pool, landscaped grounds, picnic areas, covered parking. Floating at 5.0% over 30 Day LIBOR, debt service is paid monthly on an interest only basis for the entire three year term for the non-recourse loan. Locked for the first year, there is a 1 point exit fee that will be reduced should the bridge lender provide the permanent take-out.
