Sunshine Apartments

Bank
15,600 SF
$2.6M with a 700k earn out
San Diego, CA

This 26-unit, 3-story, senior housing apartment complex is composed entirely of 1BD/1BA units and is an age-restricted complex for residents 55 and over.  PSRS procured a loan, for a repeat borrower, in this 10/31 exchange deal, by helping qualifying them for an earn-out provision to avoid the costs of re-financing while simultaneously re-capitalizing with higher leverage.  PSRS also found them a low fixed rate, interest only, non-recourse 30/30 loan,  fixed for 5 years at about 4% with initial funding of $2,600,000, and an additional $700,000 released upon certain benchmarks.  Additionally, there is also 3 years of interest only payments which is a big benefit because it increases the cash flow.