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11/30/15
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GEORGE SMITH PARTNERS -- Shahin Yazdi and Jeremy Michaelson of George Smith Partners arranged $20.9 mil in acquisition/bridge financing for the purchase of a 163-unit, historical Hollywood Apartment building with 10.5k sf of ground floor retail. Of the 163 units, 105 (64%) are sub-350 sf efficiency units. Many tenants are still receiving rent concessions from leases signed at the end of 2013 when the property was vacant. Two of the larger retail tenants were still in abatement and owed money for tenant improvements. Despite recently completed remodeling, the borrower felt further upgrades would benefit the Net Cash Flow. Since the property was just rehabilitated in 2013, some capital providers were not convinced that further capital upgrades would generate additional rent growth. However, market research suggested otherwise and GSP was able to secure financing sized to 80% of the total capitalization consisting of the $25.25 mil purchase price and $815k of capital upgrades. Priced at 30-day LIBOR + 435, the non-recourse loan carriers a three-year term with two 12-month extension options.
WALKER & DUNLOP -- Jeff Lawrence and Matt Baptiste of Walker & Dunlop Inc closed a $17 mil Freddie Mac loan for an affordable multifamily project located in Houston, TX. The complex features 300 plus units, playgrounds, a community center building, and has undergone over $1.4 mil in capital improvements since 2006, including exterior siding replacement, gutters, fence, window replacement, appliances, and patio/balcony repairs.
CAPITAL ONE -- Chad Thomas Hagwood of Capital One arranged a $3.1 mil refi loan on Orange Grove, a 77-space manufactured housing community (MHC) in San Fernando. Ladder Capital Finance provided the 10-year, fixed-rate loan, amortized on a 30-year schedule and payable on an actual/360 basis. The borrower, Orange Grove MHP Group LLC, owns and manages 11 manufactured housing communities in Arizona, California, Colorado, Georgia, and New Mexico. The company has owned Orange Grove for 20 years.
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