Rate: 9.25% Fixed
Term: 18 Months, with Two 3-Month Extension Options
Amortization: Interest Only
LTC: 82% (combined on land & construction)
Guaranty: Non-Recourse, with Completion Guaranty
Prepayment: 9 Months Minimum Interest
Transaction Description:
George Smith Partners successfully arranged $13,990,000 in acquisition and construction revolver financing for a 23-lot, for-sale, detached single-family residential community in Prescott, AZ. The Project is located in a gated community within the 1,100-acre Prescott Lakes master-planned community. The City of Prescott, known for its seasonal climate, quality of life, and low property taxes has experienced tremendous population growth. The Sponsor, a repeat client, recognized the opportunity to develop much-needed housing for the area. Despite the increasingly challenging market, GSP leveraged its expertise and relationships to identify a construction lender that had a deep understanding of the submarket, understood the projected sales prices (appraisal requirement waived), and recognized the Sponsor’s ability to execute on their plan. GSP was able to negotiate a high-leverage, fixed-rate loan and worked efficiently with the Lender throughout the one-month closing process.
Advisors
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Evan Kinne
Managing Director, GSP; CEO, AXCS Capital
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Ed Steffelin
Managing Director, GSP; President, AXCS Investments
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Jordan Lipton
Vice President
Related Financings
- No related financings.
