FINfacts™ XXIV – No. 317 | May 11, 2022

MARKET RATES
Prime Rate 4.00%
1 Month LIBOR 0.84%
6 Month LIBOR 1.98%
5 Yr SOFR Swap 2.80%
10 Yr SOFR Swap 2.85%
5 Yr US Treasury 2.89%
10 Yr US Treasury 2.93%
30 Yr US Treasury 3.05%

RECENT TRANSACTIONS
$7,600,000 Cash-Out Refinance of a 30-Unit Multifamily Property at 3.5% – 80% LTV; Los Angeles, CA

Rate: 3.50%
Term: 7 Years
LTV: 80%
Prepayment: 2,1,0

Transaction Description:

George Smith Partners arranged $7,600,000 in permanent financing for the refinance of a 30-unit multifamily loan located in Los Angeles, CA. Due to GSP’s strong relationship with this Lender, we were offered a special bucket of low-cost capital for select sponsors. GSP was able to connect our long-term client’s property to the lower cost capital. The Sponsor recently completed building improvements including unit renovations, new foundation, new structural beams, and system upgrades. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 7-year term, fixed at a rate of 3.5%. The financing represents 80% loan to value with a minimum 1.20 DSCR. The flexible stepdown prepayment structure is equal to 2% in Year 1, 1% in Year 2, and 0% thereafter. The cash-out loan allows the Sponsor to use more equity towards continuing to grow their multifamily portfolio. Thanks to our long-standing relationship with this Community Development Lender, GSP was able to meet the Sponsor’s deadline and close this transaction within 45 days from signing the term sheet.

Advisors

Bryan Shaffer
Managing Director & Principal
Ruben Bohbot
Vice President

SPEAKERS CORNER


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HOT MONEY
Bank Priced Financing for Non-Recourse Multifamily Bridge with Zero Cash Flow – 5% Nationwide

George Smith Partners is working with a capital provider funding non-recourse bridge multifamily projects with zero cash flow floating from 5% in all markets nationwide from $3,000,000 – $25,000,000. This program does not require interest rate caps for the 2-year term for high vacancy, heavy rehab story deals. Exit fees range from .25% – 1.0% depending on deal size and can be waived with property refinance.

More Hot Money ›

Pascale's Portrait
PASCALE'S PERSPECTIVE
Inflation: Today’s CPI Report indicates the peak, a plateau, or?

After last week’s fifty basis point Fed increase on Wednesday and 10 year Treasury spiking to nearly 3.20% on Friday, markets were closely watching today’s release of the April CPI report for signs of relief. The Fed’s hawkish stance on inflation has magnified the significance of any indications of moderating price increases. The good: annual CPI dipped from 8.5% (last month, the highest since 1981) to 8.3% (still very high). Markets were hoping for 8.1%. The Not So Good: Core CPI rose 6.2% (estimates were 6.0%), monthly gains were higher than expectations: 0.3% headline (estimate 0.2%) and 0.6% core (estimate 0.4%). The market’s reaction was schizophrenic. Treasury yields initially jumped from about 3.00% to 3.08% before closing at 2.89%. Stay tuned. By David R. Pascale, Jr. , Senior Vice President at George Smith Partners

More Perspectives ›

If you have an inquiry regarding George Smith Partners’ commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer at (310) 867-2995 or taugust@gspartners.com


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