(Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles).
LOS ANGELES-GH Palmer, the developer of the 566-unit Orsini II apartments in Downtown L.A., has refinanced the maturing construction loan on the project with funding arranged by George Smith Partners. Principal and managing director Gary M. Tenzer of GSP was assisted by vice president Nick Silbergeld in arranging the financing, which includes $79 million in senior debt and $13 million in preferred equity.
“This was a complex structured transaction in which the borrower considered many financing options, including both floating and fixed-rate loans,” explained Tenzer. He said the GSP team assembled an extensive analysis to compare the potential financing options for the borrower and chose the financing plan recommended by GSP, which included the combination of senior debt and preferred equity.
The $79 million non-recourse senior debt financing closed with an interest-only rate of 3.75% for five years. The $13 million in preferred equity was provided by a REIT and was secured with an interest rate of 10%, with a pay rate of 8% for five years.
GSP describes the Orsini II apartments, at 550 N. Figueroa St., as an institutional quality complex that features floor plans ranging from studios to two bedrooms with unit amenities including nine-foot ceilings, gourmet kitchens, in-unit washers and dryers and walk-in closets. Common area amenities include a host of convenience, fitness, entertainment and lifestyle facilities and services, according to the web site for the complex.
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