DEAL OF THE DAY: George Smith Arranges $112M 223(f) Refi at 3.75% Interest, 80% LTV

Santa Clarita, Calif. – Commercial real estate investment banking firm George Smith Partners (GSP) arranged the refinance of a multifamily property, The Colony Townhomes, in Santa Clarita, Calif., utilizing HUD’s 223(f) program.

The program insures mortgage loans to facilitate the purchase or refinance of existing multifamily rental housing, according to Gary M. Tenzer, principal and managing director of George Smith Partners. Tenzer and George Smith Partners’ Vice President, Nick Silbergeld, handled the financing.

“We assisted our client by utilizing the HUD 233(f) program to refinance a maturing loan,” says Tenzer. “The program offers the highest leverage and lowest rates for conventional financing in today’s market. GSP was able to secure the financing by providing the lender with quantitative and qualitative analysis that established market demand as well as occupancy trends. We also guided our client through a new loan qualification procedure imposed during the application process.

“By constantly communicating with specialized data providers and the client, we were able to relay the most current and accurate information to the lender,” adds Tenzer. “This information demonstrates the property’s stability within its market, in turn solidifying the lender’s confidence in the loan, and allowing GSP to achieve what is reportedly, one of the largest loans ever completed under HUD’s 223(f) conventional loan program.”

The loan is non-recourse and has an interest rate of 3.75 percent fixed for 35 years, fully amortizing with a loan to value of 82 percent.

The Colony Townhomes, located at 17621 Pauline Court in the city of Santa Clarita, Calif., and consists of 752 units, with two- and three-bedroom, two-story units. Each unit contains granite counter tops, washer and dryers, fireplace, and two car direct-access garages, along with community amenities including five pools, a fitness center and five spas.