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| Transaction Description: GSP successfully placed the acquisition financing for 172-unit apartment building that was foreclosed on by the prior lender. The property is currently 90% occupied at below market rents. While not a true distressed asset, the former lender was not interested in owning the property, and liquidated it for $3,300,000 ($19,200 per unit). The property requires $300,000 of cosmetic improvements for maintaining or upgrading gates, fences, swimming pool & roof repairs, and stairwell reinforcement. |
| Challenge: The borrower is an absentee owner, and required quick close financing to accommodate their escrow commitment. Traditional “Hard Money” was not an option as the Borrower was rate sensitive and required higher leverage debt. Certainty of execution was also mandated to avoid forfeiture of the Borrowers’ non-refundable escrow deposit. |
| Solution: GSP identified a reliable private equity capital provider who is comfortable with the Borrower’s business plan despite its out-of-state location. The lender provided an aggressive loan structure and proceeds at favorable pricing and ultimately closing in 10 days from signing of loan application. |
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| Rate: 9.5% |
| Term: 2 Years |
| Amort: Interest Only |
| LTC: 65% |
| Prepayment: 6 Month Locked then Open |
| Recourse |
| Lender Fee: 2.5% |
| Broker: Gilda Rivera |
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