Transaction Overview
Shahin Yazdi successfully placed the cash-out refinance of three, HAP Contract properties in South Los Angeles. Sized to 75% of value, the 10 year term floats at Prime + 0.25% subject to a 3.50% floor and a 5.50% ceiling for the first 7 years of the loan. There is no prepayment penalty for the life of the loan. Each property held its own Low-Income HAP Contract dictating resident income for these Section 8 properties. Past property performance and the security of the HAP contracts allowed the lender to underwrite a substantive return of equity to the Sponsor.
