REDLANDS, CA-Commercial real estate investment banking firm George Smith Partners has successfully arranged $12.8 million in Freddie Mac financing and a $16.6 million sale for a 198-unit class-B multifamily property here. The 198-unit multifamily complex, Citrus Grove Apartments, is adjacent to the University of Redlands, and has historically seen strong performance, often outperforming other similar properties within its own market.
According to David Rifkind, a principal and managing director of GSP, “George Smith Partners was able to utilize their correspondent relationships with Freddie Mac to provide the financing, despite the fact that some lenders and investors view the Inland Empire as a market full of distressed and undesirable property.” The interest rate was 5.18% fixed for 10 years with 2 years of interest only, then a 30 year amortization.
“The investor had great foresight to understand the micro dynamics of not only the Redlands market, but also of this property’s position within that market,” adds Steve Bram, a principal and managing director at GSP. “And they worked around the clock to review the due diligence to commit to move forward.”
During the contract period, the original buyer, a George Smith Partners’ client, unfortunately had lost his source of equity and came to George Smith Partners to also find a new equity partner or a buyer to purchase his position, according to a prepared statement. GSP could not disclose the original buyer’s identity at this time.
George Smith Partners immediately introduced the original sponsor to another GSP client, a West Los Angeles- based investor with property both locally and nationally, who was able to close in the required 35 days. GSP also could not disclose the identity of the investor.
“This made the property a very attractive investment that will be stable long term and have great potential for growth,” Rifkind adds. “The challenge lay in the fact that the institutional seller had only provided the buyer a very short, five-week deadline to close this loan.”
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