Transaction Overview
George Smith Partners successfully arranged $24,563,000 in non-recourse, fixed-rate stretch senior acquisition financing for the purchase of a 300-unit, 1982-vintage Class B multifamily community in Tucson, Arizona.
The engagement began as a preferred equity request behind an in-process Freddie Mac execution. After assessing the capital stack, GSP recommended converting the financing structure to a stretch senior loan, which delivered the Sponsor a single-tranche solution at a full 75% loan-to-purchase price, eliminating the cost and complexity of a layered pref piece.
Between application and closing, Treasury rate increases triggered the lender's DSCR sizing constraint. To preserve full proceeds, GSP structured a coordinated rate buydown, with the lender absorbing a portion of the buydown cost to offset the Sponsor's contribution.
The financing closed on schedule at full proceeds with an interest-only pay schedule for the term of the loan.
