Finfacts XXIV – No. 459

Transaction Description: 

George Smith Partners successfully arranged $7,700,000 in structured bridge financing for the refinance of a 15-unit Class A multifamily property located in West Los Angeles, CA. The financing structure included a $7,000,000 senior loan and a $700,000 mezzanine loan. The new bridge financing allowed for increased proceeds and flexibility, including open prepayment with no lockout, allowing the Sponsor to have the flexibility to refinance the project or sell it if market conditions present the opportunity to do so. GSP also evaluated permanent loan options through agency, banks, and CMBS lenders but ultimately advised a structured bridge solution to maximize leverage and maintain optionality given the volatility of the current capital markets environment. Despite a volatile market, GSP closed the financing with favorable terms, overcoming significant structural and timing hurdles.