Multifamily

George Smith Partners successfully structured a 75% loan to value refinance a well-located Los Angeles apartment building. This asset was acquired through a foreclosure sale 12 months before this loan funding. This new loan offered a return of equity and represented 91.5% of the original acquisition just one year ago. The portfolio loan is fixed for five years at 3.85% before rolling to a floating rate for the remainder of the loan term. Although funded at 91.5% of the cost, the 3rd party appraisal confirmed a 75% of value. Challenge: The investor required a high-leverage loan to recapitalize his liquidity for additional acquisitions. The property was purchased through a foreclosure sale and historical operating statements, maintenance records, and other financials were not available for the lender’s due diligence. Solution: GSP identified a capital provider knowledgeable about this location and marketplace and is comfortable with the investor’s expertise, level of guarantee, and business plan. GSP vetted the risk exposure upfront and worked to structure loan criteria to satisfy the borrower and lender, resulting in a highly leveraged loan for the Borrower that closed in 33 days from application.