Transaction Overview
George Smith Partners successfully secured $7,850,000 in proceeds for the acquisition of a 48-unit multifamily property in Hollywood. The loan is fixed at a rate of 3.30% for 7 years and has 5 years of interest only payments. The Property’s location, a few feet from a fault line, raised a concern that earthquake insurance might be required. GSP conducted a comprehensive search of city records and engaged a seismic report to demonstrate that sufficient retrofit work had already been completed. As a result, the Lender waived the additional insurance. Several lenders required a reserve account of 6-12 months of P&I payments, but the selected lender had no holdbacks or reserves. The loan closed with no changes to the original application.
