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11/15/16
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George Smith Partners has arranged $33 mil in cash-out refinancing for a nine-property portfolio of rent-stabilized apartment buildings in the West Hollywood and Koreatown neighborhoods of Los Angeles on behalf of a local owner and developer. The financing, funded through two capital providers, has a five-year fixed rate of 3.15%.
The complex transaction required nine separate uncrossed loans to close concurrently with a structure that provided $5 mil in return of equity for the borrower. The borrower had unrelated acquisitions in escrow at the time of the portfolio refinance, which further complicated the process.
Bryan Shaffer, Jon Shapiro and Max Lehrman with George Smith Partners secured the permanent financing at 75% of the portfolio’s appraised value, and a 1.20 DCR. Each of the nine loans will self-liquidate over 30 years. After the initial five-year fixed-rate period, the rates will reset and float at 235 over LIBOR for the remaining 25 year term. A step-down prepayment is underwritten, which opens without penalty after the third year.
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