First-Time Commercial Real Estate Acquisition Loan to 65% of Purchase

Transaction Description: Ameet Chagan arranged an $850,000 acquisition loan for a first-time commercial real estate purchaser of a 10-unit multifamily building. Although our Sponsor owns and manages 2 & 4 plexes, this 10-unit acquisition is his first venture away from the conforming residential market. The subject property was distressed with minimal operating history available from the seller and proforma cash flow was challenging to quantify for the Class C asset. GSP identified a regional portfolio lender with an appetite for multifamily who was willing to rely on the buyer’s background in owning 2-4 unit residential buildings in this market. Fixed for five years at 4.25%, the recourse loan allows for a step-down prepayment from 3% with the last two years open to prepayment without penalty.