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4/17/08
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George Smith Partners Inc has arranged a $22.5 mil bridge loan for the acquisition of Mountainside Village Apartments, a 197-unit multifamily property located at 1660 Kendall Dr in San Bernardino. Situated across from California State University, San Bernardino, the gated community consists of two- and three-bedroom apartment units, with floor plans ranging from 800 sf to 1k sf.
The borrower, Mountainside Village Apartment Investors LP and Griffin Investments LLC, purchased the property for $26.5 mil, or $134.5k/unit. It was sold by RSV Mountainside Partners LLC, a local investor.
Steve Bram and Allison Higgins at George Smith Partners arranged a non-recourse, 36-month bridge loan, at Libor + 3.05 percent and at 77% of cost. The lender funded below a breakeven debt coverage ratio with an interest reserve to cover the cash flow shortfall.
The borrower plans to complete extensive renovations, as well as implement an aggressive management program to bring rents up to current market levels. The renovation is estimated to cost $1 mil. For the reposition period, George Smith Partners structured a $400k debt service reserve.
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