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G.H. Palmer Sees Benefits of Creative Financing

The developer leverages a creative financing strategy to secure a $233 million cash-out refinance of two Downtown properties, GlobeSt.com learns in this EXCLUSIVE story.

By Kelsi Maree Borland | Updated on February 06, 2018

Gary Tenzer Gary Tenzer is co-founder and principal at George Smith Partners.

George Smith Partners‘ Gary Tenzer has leveraged another creative financing strategy on behalf of his client G.H. Palmer. This time, Tenzer, a co-founder and principal at GSP, secured a $233.6 million cash-out refinance for two multifamily properties in Downtown Los Angeles, Medici and Orsini I. Palmer secured a 10-year fixed rate loan at a lower 4.02% interest rate, but paid a pre-payment penalty to secure the lower rate early. While typically paying a pre-payment penalty is not recommended, the savings from the lower interest rate offset the cost of the pre-payment penalty a breakeven timeframe of two years. We sat down with Tenzer for an exclusive interview to find out more about these deals, why they are beneficial and if other borrowers are looking at similar strategies.

GlobeSt.com: This is the second similar creative refinance deal that you have secured for G.H. Palmer. What are the benefits of this creative strategy?

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