Transaction Overview
George Smith Partners arranged $24,500,000 of non-recourse, acquisition bridge financing for the purchase and renovation of a 301-unit multifamily property located in the Southwest. The property, which was built in 1971, is comprised of 25 garden-style buildings with mostly 1 and 2-bedroom units. Prior management had done a subpar job in terms of maintenance which required the new buyer to execute a sizeable renovation plan in order to upgrade the units properly: including new cooling towers, infrastructure plumbing and heavy unit renovation. The lender was able to get comfortable with a large capital expenditure budget due to the experience of the new operator and their proven track record in the market and submarket. Sized to 81.5% of total cost, the non-recourse bridge loan floats at 5.25% over 1-Month LIBOR for 3 years.
