George Smith Partners has arranged the $92 million refinancing of a maturing construction loan on Orsini II Apartments, a 566-unit apartment complex in downtown Los Angeles, for owner GH Palmer. The $92 million transaction includes $79 million in senior debt financing and $13 million in preferred equity.
The Orsini II apartment complex is located at 550 North Figueroa St. The 566-unit institutional-quality apartment community features studio, one-, and two-bedroom floor plans that offer 9-foot ceilings, gourmet kitchens, in-unit washers and dryers and walk-in closets.
“This was a complex structured transaction in which the borrower considered many financing options, including both floating- and fixed-rate loans,” says Gary Tenzer, principal and managing director of Los Angeles-based George Smith Partners.
“Our team put together an extensive analysis to compare the potential financing options for the borrower. The borrower used this data to select our recommended financing plan, which included a combination of senior debt and preferred equity financing,” adds Tenzer, who was assisted in the transaction by Nick Silbergeld, a vice president with George Smith Partners.
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 real estate investment trust and was secured with an interest rate of 10%, with a pay rate of 8% for five years.
Founded in 1992, George Smith Partners is a real estate investment banking firm that specializes in arranging financing for commercial and residential properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity.