Monday, July 1, 2013

$5,619,400 Quick Close Loan for Houston Multifamily

$5,619,400 Quick Close Loan on a 382 Unit, Class C Houston Multifamily Project
Transaction Description: Bryan Shaffer successfully placed the acquisition/reposition debt for a distressed 382 unit Multifamily property that was 40% occupied at funding.  The loan closed within 7 days from when the lender received this loan request.  The non-recourse loan to an international Borrower was sized to 70% of purchase plus 100% of “good-news” dollars to $3,000,000.
Challenge:  Funding a severely distressed building with break-even cash flow in a 7 day window presented a significant challenge.  The “off-shore” structure of the Borrower added an additional level of complexity.   
Solution: Leveraging our long-term relationships and experience with an international Borrower, GSP was able to quickly identify the correct lender and close the transaction within the 7 day-deadline.  Mr. Shaffer customized an ownership structure to allow for the release of the construction funds within the time frame of the buyer. 

Rate: 11%
Term: 18 Months
Amort: Interest Only
LTC: 70% + $3M rehab

Broker: Bryan Shaffer