George Smith Partners' GaryTenzer has leveraged another creative financing strategyon behalf of his client G.H. Palmer. This time,Tenzer, a co-founder and principal at GSP, secured a $233.6 millioncash-out refinance for two multifamily properties in Downtown LosAngeles, Medici and Orsini I. Palmer secured a 10-year fixed rateloan at a lower 4.02% interest rate, but paid a pre-payment penaltyto secure the lower rate early. While typically paying apre-payment penalty is not recommended, the savings from the lowerinterest rate offset the cost of the pre-payment penalty abreakeven timeframe of two years. We sat down with Tenzer for anexclusive interview to find out more about these deals, why theyare beneficial and if other borrowers are looking at similarstrategies.
GlobeSt.com: This is the second similar creativerefinance deal that you have secured for G.H. Palmer. What are thebenefits of this creative strategy?
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