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GSP is working with a national capital provider offering up to 6 month early rate-locks for multifamily assets. The entire coupon (not just the index or spread) is fixed at or shortly after application with a two-point deposit. Deposit funds are returned at close. The lender will allow up to a 5% forgiveness of proceeds at funding without breakage costs should the final underwriting not support the entire locked amount. Up to 25 basis points will be added to the spread for the forward, providing an inexpensive hedge against market movement as witnessed over the last two months. The program allows for stabilized properties to lock today’s rates while pre-payment penalties on the current capital stack burn off. Underwritten transactions from $5,000,000 and up will qualify.
