$92,000,000 Refinance of Multifamily Apartment Complex in Los Angeles

Transaction Description: $92,000,000 Refinance of Multifamily Apartment Complex in Los Angeles GSP arranged the senior secured and preferred equity financing for a 566 unit apartment complex. The proceeds were used to refinance a maturing loan. Challenge: With mixed short and medium term rate outlooks, the client was considering both a floating and fixed rate execution. GSP also had to coordinate communication between the senior lender and the preferred equity investor while working under a tight timeframe due to a maturing construction loan. Solution: GSP provided the borrower with extensive analysis calculating rate sensitivities when comparing a floating rate execution to several potential fixed rate options. The client used this analysis when considering rate and duration risk appetite, and ultimately chose to lock in rate exposure. GSP maintained constant communication throughout the process and facilitated negotiations between the senior and subordinate lender, allowing for a simultaneous funding. Senior Debt Amount: $79,000,000 Rate: 3.75% Term: 5 Years Amort: Interest Only LTV: 63% DSCR: 2.11 Prepayment: Defeasance Non-Recourse Lender Fee: 0.25% Preferred Equity Amount: $13,000,000 Rate: 10% Pay Rate: 8% Term: 5 Years Amort: Interest Only LTV: 73% DSCR: 1.50 Prepayment: Stepdown Non-Recourse Lender Fee: 0.50%