Wednesday, May 22, 2013

Shaffer Completed Another Multifamily Bridge Loan

Completed Commercial Real Estate Loan
For Info Contact Bryan Shaffer
5 – 8 – 13
Transaction Description: Bryan Shaffer successfully placed the acquisition debt of a 30 unit multifamily property in the Koreatown sub-market of Los Angeles. The owner plans to reposition the property and required a closing within 30 days. The loan is interest-only for 6 months before rolling into a 30 year amortization. There is no prepayment penalty.
Challenge: Although 100% occupied, many capital providers did not embrace the Sponsor’s vision of creating additional value to a building with strong occupancy.
Solution: GSP identified an international lender who specializes in bridge products and accepted the borrowers’ business plan and rent growth projections. The streamlined process allowed the loan to fund within 30 days of the executed purchase agreement. The lack of prepayment penalty will allow the Sponsor to seek more aggressive financing once the property is re-stabilized at a higher income level.
Rate: 5.0%
Term: 5 Years
Amort: 6 months IO; 30 Year Amort
LTC: 70%
Prepayment: None
Lender Fee: 1/2%
Broker: Bryan Shaffer