Transaction Overview
George Smith Partners arranged acquisition bridge financing for a value-add multifamily property in Inglewood, California. The property is located one mile from the City of Champions development site and the revamped Forum. Sized to 70% of total project cost, the loan includes 100% of future funding for property renovation, which includes a full gut renovation of unit interiors and an exterior upgrade. The two-year bridge loan is interest only and floats at Prime plus 0.5% (5.00% today) with no prepayment penalty. Interest is not charged on the holdback until funds, and the loan was structured with an interest reserve to mitigate the property’s weak cash flow during the renovation period. The lender fee was 0.5%.
