$12,380,000
Transaction Description:
George Smith Partners successfully arranged and closed $12,380,000 in land acquisition and predevelopment bridge financing for a 50-acre retail development site on the West Coast. The transaction involved raw land requiring a general plan amendment, presenting a complex pre-development financing scenario.
GSP identified a bridge lender specializing in land and predevelopment financing who understood the entitlement risk and recognized the sponsor’s development capability and extensive experience. The financing provided the client with capital to pursue entitlements for a grocery anchored retail center in a prime retail corridor. The structure included a favorable rate step-down upon securing entitlements.
LTV/LTC: 50% LTV / 53% LTC
Term: 18 months
Origination Fee: 1.00%
Exit Fee: 1.00%
Rate: Greater of 1M Term SOFR + 7.95% or 11.45% (3.50% floor); rate decreases by 0.45% upon securing entitlements within 12 months
Extensions: Two 6-month extensions available, subject to securing full retail entitlements and meeting 50% as-is LTV test
Financing Team
Steve Bram
Senior Managing Director & Principal / GSP Co-Founder
David R. Pascale, Jr.
Senior Director
Nick Rogers
Senior Vice President
Grant Pugatch
Vice President
