LOS ANGELES-A joint venture of Mountainside Village Apartment Investors LP and Griffin Investments LLC has acquired a 197-unit apartment complex for $26.5 million. The buy floats on a $22.5-million acquisition bridge loan that was designed to provide favorable terms despite the credit crunch, according to George Smith Partners. Principal Steve Bram of Century City-based George Smith explains that “Many lenders were hesitant to fund this loan” because of the credit crunch and the increased multifamily supply in the market.

Bram and Allison Higgins, assistant vice president at Smith, arranged the nonrecourse, 36-month bridge loan, at Libor plus 3.05%. Bram notes that despite the reluctance of many lenders, Smith found a lender that would provide a low-rate loan at 77% of cost.

The lender funded below a break-even debt coverage ratio with an interest reserve to cover the cash-flow shortfall. For the reposition period, George Smith Partners structured a $400,000 debt service reserve.

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