FINfacts™ XXIV – No. 440 | November 21, 2024

MARKET RATES
Prime Rate 7.75
5 Yr US Treasury 4.30
10 Yr US Treasury 4.42
30 Yr US Treasury 4.59

RECENT TRANSACTIONS
$50,570,000 Portfolio Financing for 39 Multifamily Properties in Western States

Rate: 6.25%

Term: 5 years Fixed; rate reset every 5 years thereafter

Amortization: 25 years

LTV: 65%

Prepayment: Yield Maintenance

Lender Fee: 1%

Guaranty: Recourse

Transaction Description: 

George Smith Partners successfully closed a 39-property refinance of workforce housing apartments located in the Western States. GSP arranged a programmatic relationship with a life-insurance company that provides long-term financing with the flexibility of prepaying or resetting the rate every 5 years. Despite the tough lending market, the lender also allowed a substantial return of equity, locked the rate at application and underwrote to a 1.25 DCR. The lender also agreed to consider additional cash out at the time of rate adjustments. Combined appraisals for multiple properties were allowed, limited environmental reports were required and reserves were waived. The Sponsor has been a GSP client for over 30 years.

Advisors

Steve Bram
Managing Director & Principal / GSP Co-Founder
David R. Pascale, Jr.
Senior Vice President
Nick Rogers
Vice President

If you have an inquiry regarding George Smith Partners’ commercial real estate financing, please contact your GSP representative or Matthew Kirisits, at (310) 867-2951 or mkirisits@gspartners.com


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