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. "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.
About George Smith Partners: Founded in 1982, George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. The company has arranged more than $55 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com