FINfacts™ XXIV – No. 440 | November 21, 2024
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Prime Rate |
7.75 |
5 Yr US Treasury |
4.30 |
10 Yr US Treasury |
4.42 |
30 Yr US Treasury |
4.59 |
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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
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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.
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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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Constellation Place 10250 Constellation Blvd., Ste. 2300 Los Angeles, CA 90067
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© 1999 - 2025 George Smith Partners, Inc. DRE # 00822654 FINfacts is an ePublication of George Smith Partners, Inc. For Promotional Purposes Only. All Rights Reserved.
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