Rate: 7.5% Fixed (Prime+0%)
Term: 2 Year Bridge + 3 Year Term Option with ability to convert to Term Loan after 1 year based on T3 sufficient to meet 1.25 DSCR based on 6.25% rate, and 30-year amortization.
Origination Fee: 0.25%
Amortization: Interest Only During Bridge Loan
Prepayment: 3,2,1,0,0
Guaranty: Recourse

Transaction Description:

George Smith Partners secured a bridge loan to finance the takeout of a construction loan on a 17-unit/44-bed Co-Living Community located in the Sunset District of San Francisco. George Smith Partners put the construction loan in place in early 2020 and worked with the construction lender to accommodate delays in the renovation/reposition caused by the Pandemic. The Property represents a former 12-unit apartment community that was repositioned into a Co-Living Community through the addition of 5 rental units in the former ground floor parking garage, as well as the addition of a partial 4th floor on the rooftop of the building. The Borrower went under application in February with closing contingent upon receipt of a Certificate of Completion. GSP was able to leverage its relationship with both Lenders to extend maturity as well as the rate lock in a rising interest rate environment. GSP was also able to negotiate approximately $200,000 in cash to Borrower at close to be used toward FF&E. The property, known as “The Irv,” will be managed by Common. Unlike most co-living products in the market, each unit offers a common area living room, state of the art kitchen, and a bathroom to bedroom ratio of 77% with most units offering en-suite bathrooms. Communal areas include a central courtyard with a BBQ grill and firepit/seating area, a rear yard with secured bike parking, 400 SF roof deck with ocean views, and a surfboard and wet suit wash and storage area.

Rate: Fixed at 5.71% for 7 Years
Interest Only: 5 Years
Prepayment: 4433211
LTV: 60%
DCR: 1.25x
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully secured a cash neutral permanent refinance loan for a 12-unit multifamily property in Los Angeles. Due to current market conditions, in which many regional banks are not lending, GSP had to expand its list of capital sources. A national bank was found that provided enough proceeds to pay off the in-place loan plus fees. The loan has 5 years of Interest Only payments on a 7 year fixed rate term. The lender provided non-recourse financing without charging any rate premium compared to a recourse loan. The loan closed in 26 days from application, which may be a record for a bank loan.

Advisors

Matthew Kirisits Director