California

George Smith Partners successfully placed the cash-out refinance of a five-unit, HAP Contract multifamily rental property in South Los Angeles, California. The property was part of a four building HUD Portfolio that was sub-divided before being refinanced earlier this year. A later HAP contract start date for this property precluded it from being financed with the balance of the portfolio. The past performance of the properties and security of the HAP contract allowed the lender to underwrite using in-place rents rather than the slightly lower market rate income. Sized to 70% of value, the floating rate loan is priced at Prime + 0.50% for the 10 year term, subject to a 4.0% floor and 5.5% ceiling for the first five years of the loan. Amortized over 30 years, there is no prepayment penalty.