June 14, 2018
George Smith Partners (GSP) arranged $158.8 million in financing for Colony Townhomes, a 752-unit multifamily property in the Canyon Country community of Santa Clarita, CA on behalf of G.H. Palmer. The new loan replaces a HUD loan, previously arranged by GSP, with a remaining term of 23 years and pre-payment penalties in place.
“Through analysis, we determined that the interest rate savings for a new 10-year loan would offset the early pre-payment costs of the existing loan, while also providing the opportunity to cash out a significant amount of appreciated equity,” says George Smith Partners’ Gary M. Tenzer, who arranged the financing.
George Smith Partners secured the interest-only, non-recourse loan at a fixed rate of 4.29% for a 10-year term. The loan is sized at 65% of value.
Tenzer notes recent fluctuations in the 10-year Treasury spurred additional urgency in the transaction for the asset located at 17621 Pauline Ct.
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