Refinance of 30 Unit Apartment Building in Koreatown Los Angeles with $2,300,000 Cash Out to Borrower

George Smith Partners successfully arranged the refinance of a 30-unit multifamily building located in the Koreatown neighborhood of Los Angeles. GSP worked with a local bank who had a strong appetite for multifamily lending and ultimately structured a loan in which the borrower pulled out $2,300,000 of cash. Due to the incredible location of the property, GSP was able to work with the lender to use a 1.15x DCR instead of a 1.20x DCR. The recourse loan has a fixed rate of 4.10% and refinanced a prior agency loan. A unique feature of this loan is the 30-year term with 30-year amortization. Following the first 5 years of the loan, the Borrower will have the ability to extend the loan at a fixed spread over the 5-year Treasury every 5 years until the 30-year term has ended and the loan is fully paid off. The safety feature always guarantees the Borrower a takeout loan. Additionally, after the first 5-year term has ended, there is no prepayment penalty. GSP also worked with the Lender to remove any lender fees.