12 – 12 – 12
GSP is placing transitional loans with a $55B private equity firm nationwide. Non-recourse loan requests over $10,000,000 will be underwritten up to 80% of cost (including reposition costs). Cash flow must be present at close as a minimum 6.5% going-in debt yield is required. Pricing starts in the low 5% range based on risk for a three to five year term. Core products plus student housing and self-storage will be considered. The same fund will offer mezz/pref equity behind their own first or an alternative capital source. Transactions over $5,000,000 will be structured to an actual 1.0 (breakeven) DCR at close with an 8% current pay, allowing for an accrual to 12%.