$16,250,000 Ground-Up Construction Loan Fixed for Seven Years at 4.0%

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

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.

Advisors

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    Rate: 5 Years Fixed @ 3.20%; then LIBOR+2.50%:
    Term: 120 Months (Construction & Perm)
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