Wednesday, October 10, 2012

$2,600,000 Fixed-Rate Acquisition of a 31 Unit San Fernando Valley Apartment Building

Transaction Description:
$2,600,000 Fixed-Rate Acquisition of a 31 Unit San Fernando Valley Apartment Building. GSP arranged the $2,600,000 self-liquidating acquisition loan for a 31-unit, stabilized multi-family property. The loan provides for a 10 year fixed term at 6.02% before rolling into a floating rate loan for the remaining life of the loan. The floating term is priced at 6 month LIBOR plus 2.75% after the 10 year fixed rate period. The borrower locked rate at application to secure loan proceeds in the event of a rate spike. Just prior to close, interest rates fell significantly. GSP worked with the lender to allow the borrower to re-lock at the then lower market rate in exchange for a small portion of the borrower's rate lock deposit.



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