Small Balance Preferred Equity for Construction or Transitional Projects

Developers previously halted by lack of sufficient equity in their deal can pick their shovels back up. GSP is working with a lender that can originate construction loans for multifamily, retail, office, industrial, and select condo projects up to 90% LTC to 70% LTV on an un-trended basis. Transactions will be considered in the top 100 MSAs. Target transaction range from $15,000,000 to $50,000,000 with pricing that starts at 750 over LIBOR with existing inter-creditor agreements already in place with banks. The lender can also inject preferred equity investments starting as low as $2,000,000 with pricing around 1400 to 1600 over LIBOR for sponsors who have bank financing already in place. Benefits of the program include future funding and flexible minimum interest before prepayment.