Rate: 3.40%
Term: 5 years
Max LTV: 65%
Min DCR: 1.20x
Amortization: 3-Years Interest Only, 30-Year Schedule thereafter.
Origination Fee: Par
Prepayment: 3, 1, 1, 1
Guaranty: Non-Recourse
Transaction Description:
George Smith Partners secured senior permanent financing for a stabilized multifamily property located in the Pico Robertson neighborhood of Los Angeles, CA. The non-recourse debt was utilized to complete the acquisition of the multifamily asset. The loan was structured with a 5-year term and interest only payments for the initial 3-years followed by a 30-year amortization schedule. The loan was collateralized by a Class B, three story, 16-Unit multifamily property. The Subject was 100% leased at closing but only 78% physically occupied.
GSP selected a bank lender that was able to underwrite the income from three newly executed leases with no seasoning. The Lender funded the full proceeds with signed leases and rent checks although the tenants had yet to take possession. The Lender executed on excellent terms while closing on a firm acquisition deadline of 45 days. At application, the Lender offered an early rate lock to remove any pricing risk. GSP worked with the Lender to navigate the appraisal assumptions surrounding concessions and market rent stemming from various COVID risks while maximizing proceeds.
Advisors
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Shahin Yazdi
Managing Director & Chief Operating Officer, AXCS Capital
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Jonathan Lee
Managing Director & President, AXCS Advisors
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Matthew Kirisits
Vice President
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Kyle Redmond
Vice President
Related Financings
- No related financings.
