| Transaction of the Week |  | |  | | Transaction Description: | | $8,250,000 Non-Recourse Multifamily Acquisition Loan GSP's Sponsor required a senior loan for the purchase of a stabilized, 96% occupied, 120-unit apartment complex outside Sacramento, California. The 7 year loan provides 18 months of Interest Only at LIBOR + 250 with no floor before amortizing over 30 years. |
Challenge: The Borrower, a fund, required a low interest rate, non-recourse debt and prepayment flexibility. Though the asset is performing well, it's tertiary location constrained appetite from potential lenders. |
Solution: GSP drew on its' extensive market relationships to identify a Sacramento-based lender with local knowledge of the submarket. GSP demonstrated the institutional buyer's depth of experience to attain pricing and terms that are typically available only for assets in core market locations. | | | | |  | | | | Non-Recourse Land Loans are Back! An institutional capital provider is currently funding land acquisitions and refinances from $3,000,000 to $20,000,000 in "high growth corridors". Markets include Southern California, Arizona, Colorado, Texas and the eastern seaboard from Virginia to Florida. Interest Only payments are made on a quarterly basis with fixed rates varying from 13% to 15% based on risk and term. LTV from 50% to 70% of the current market value for up to 36 months with recourse limited to standard carve-outs. Use of proceeds may include horizontal construction (off-sites, utilities, grading, etc.) Land note purchases will also be considered. | | | | Hot Money | Mini-Perm/Long-Term Mezz Debt & Pref Equity to $50,000,000 A national capital provider with $1 Billion of capital and cash on hand is extending mezzanine-debt & preferred equity behind banks, Wall Street, insurance companies, and is pre-approved with Freddie Mac to 85% LTV. An inter-creditor agreement is not required. Terms must be co-terminus with the senior debt, and range from four years to ten years with pricing from 9% to 11%. All major asset classes are considered. Some pay/accrue structure is possible although existing cash flow must be in place at close. | | | If you have an inquiry regarding George Smith Partners' commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer, at (310) 867-2995 or TAugust@GSPartners.com. | | | Join Us On LinkedIn | George Smith Partners is now on LinkedIn. Click here to join the George Smith Partners Group and gain access to current commercial real estate topics and conversation. | |
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