Rate: 4.0% fixed
Term: Ten Years Fixed for Seven Years
Amortization: IO During Construction; 27.5 Years thereafter
Loan to Cost: 75%
Prepayment: 2,2,1,1
Loan Fee: 1.0%
Guaranty: Recourse
Southern California Construction Loans – George Smith Partners facilitated the seven-year fixed-rate construction loan for the ground-up development of 60 Los Angeles “For Rent” housing units. As part of this capitalization, GSP placed the land acquisition debt in 2015. Sized to 75% of actual development costs, this institutional capital provider will fund all draw requests at the 4.0% rate that was locked at application. Interest is paid as drawn; there is no negative arbitrage. The ten-year term negates the need to process a mini-perm upon Certificate of Occupancy and removes future interest rate risk. The recourse loan is fixed for seven years at 4.0% and floats at 275 over LIBOR for the remainder of the ten-year term. Prepayment steps down; 2,2,1,1 open.
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Related Financings
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