Horizontal Multifamily Refinance

George Smith Partners placed the no-cash-out refinance of a 12 single family rental portfolio; coined as horizontal multifamily residences. The non-contiguous properties are held by a 501c3 and are deed restricted to be leased as exclusively as affordable units, charging well below market lease rates. Our Sponsor’s objectives were to significantly reduce their interest rate and extend their current loan balloon date. Deed restrictions also precluded the return of any equity. There was no warm-body available to guarantee including carve-outs. This is a completely non-recourse loan. Fixed for five years at 4.75%, the loan will recast at prevailing rates for a second five year term at the five year CMT + 3.50% and float for the remaining 20 year term. There is no balloon for this 30 year self-liquidating loan.