 |
| 566-unit Orsini II multifamily property, 550 Figueroa Downtown Los Angeles |
LOS ANGELES, CA – George Smith Partners,
one of the nation’s leading commercial real estate capital market advisors, has
successfully arranged $128.1 million in financing for Orsini II, a
566-unit, institutional-quality multifamily property in Downtown Los Angeles.
The funding was secured by Gary M. Tenzer,
Principal and Co-Founder at George Smith Partners.
The new loan replaces a $115.2
million floating rate loan George Smith Partners secured for the property in
2016, which had a remaining term of more than eight years and pre-payment
penalties in place.
“We determined that the interest
rate savings for a new 10-year loan would easily offset the early pre-payment
costs of the existing loan, while also providing the Sponsor with the
opportunity to harvest appreciated equity,” says Tenzer.
 |
| Gary M. Tenzer |
"Additionally,
we were able to secure a forward index lock and a deferred closing to stave off
further rate increases before the existing variable rate loan was no longer
locked out and able to be repaid."
Tenzer notes that the
run-up in interest rates last summer drove
the decision to secure the early rate lock.
"Today’s property owners can
benefit from working with an advisor who takes a holistic approach that serves
both the borrower and the life of the investment," says Tenzer. "In
many cases, refinancing in the current rate environment can result in
tremendous savings over the long term."
The $128,130,000 loan funded as a
10-year, fixed-rate, interest-only, non-recourse loan at 4.24% with a 55
percent loan-to-value.
Located at 550
Figueroa in Los Angeles, Orsini II is a mid-rise, over podium apartment
complex comprised of five stories built over a three-level parking garage,
within walking distance of central downtown Los Angeles and the LA Music Center.
CONTACTS:
Lisa James/Jenn Quader
(949) 438-6262
No comments:
Post a Comment