Transaction Overview
George Smith Partners arranged an acquisition bridge loan for a property near the University of Southern California. At the time of purchase, the property was operating at below-market rents. The borrowers include a foreign national and first time real estate investors, so GSP identified a lender that was willing to rely on the sponsors’ strong credit histories and experiences managing and owning SFR and Condo units to get comfortable with the high leverage loan. Sized to 83% of total project cost with no hold back requirements for an interest reserve or capital expenditures, the loan carries a 12-month term, interest only payments at a 8.75% rate and a 4-month prepayment penalty.
