| Transaction Description: |
| $3,900,000, 65% LTC Construction Loan, Small Lot Sub-Division, Eagle Rock CA. GSP secured financing for the ground up construction of a 15 lot sub-division on a 1.5 acre in-fill site, one of the first projects approved as such in the City of Los Angeles. Because of the current housing market, lenders were anxious committing to a loan for for-sale housing. GSP created a market for the loan by emphasizing the project's strengths as a small lot subdivision. These included the fact each lot has its own APN, the units are on separate poured pads to avoid designation as condos, and that the project will have no HOA. With lenders still reluctant to commit, GSP located a lender that agreed to mitigate their risk with a multi-phase development. Phase I will include all site improvements as well as the construction of eight units. Upon the sale of five units, the bank will release committed funds for the remaining seven units. The Borrower is an experienced in-fill developer who sought a local bank to establish a long term relationship. |
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| Rate: Prime + 1% |
| Term: 18 mos, plus one 6 mo extension |
| LTC: 65% |
| Recourse |
| Lender Fee: 1.5% |
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Key Players: Jonathan Lee
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