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$23,350,000 CMBS Financing (5.45% Fixed Rate) for 3 (Non-Student) Apartment Buildings Totaling 174 Units in Westwood/West LA, California: Borrower built all 3 properties in 1986/87 and continues to own and manage them with a "pride of ownership". All 3 are class "A" luxury apartments within a 2 block area. Amenities include fitness centers, fireplaces, microwave ovens, storage lockers, individual security alarms, rooftop pool and spa, BBQ, sauna, European kitchens, TV monitored intercom and wood entryways. The owner has kept the properties in above average condition by a planned, continuing investment in all typical replacement and cap ex items. The following is the breakdown of the buildings and the respective loan amounts:
| |
Loan Amount |
# Units
|
Loan Per Unit
|
| Building 1 |
$10,050,000 |
76
|
$132,237
|
| Building 2 |
$8,100,000 |
60
|
$135,000
|
| Building 3 |
$5,200,000 |
38
|
$136,842
|
| |
$23,350,000 |
174
|
$134,195
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Borrower's Objectives: (1) Lock the all-in rate at the earliest possible opportunity without any additional cost or spread; (2) Keep existing debt service at the same level while lowering the mortgage constant from 9.02 and receiving significant cash-out (even at 68% LTV); (3) Pay off existing debt (including a small prepayment penalty on each existing loan); and (4) Take advantage of economies of scale from the 3rd party vendors due to the similarities/proximity of the properties. All of these objectives were met including a free 30-day rate lock (deposit only). Two of the properties were not owned by SPE entities. GSP was able to resolve this issue without any change in the ownership entity or structure. Terms: (1) Three separate loans, no cross collateralization; (2) Rate: 5.45% fixed (6.78% mortgage constant); (3) Term/Amort: 10/30; (4) LTV: 68%; (5) DCR: 1.51; (6) Avg. Loan Per Unit: $134,195; (7) Non-recourse; (8) Stress Test: Minimum 1.05 DCR using a 9.66 stress loan constant to achieve the final note rate; (9) Lender Fee: Par. (Gene Brunkhardt)
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