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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.