Rate: 6%
Term: 19 months + two six-month extension options
Amortization: Interest Only
LTC: 50%
Guaranty: Full recourse
Banking Relationship/Deposits: None
Transaction Description:
George Smith Partners successfully placed $14,750,000 in a cash-out construction loan for the completion of a high-end luxury home in Los Angeles, California. The loan retired a higher interest rate, funded an interest reserve account, and provided additional proceeds to fund the remaining budget of the development. The nineteen-month loan term was structured to provide the Sponsor with time to finish construction, obtain certificate of occupancy and sell the asset. Many lenders were on the fence about lending to the high-end luxury market or did not want to take on the risk of financing a mid-construction project. GSP leveraged its expertise of the Los Angeles market along with its local lender relationships to achieve all the Sponsor’s goals.
Related Financings
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$18,600,000 Construction Financing for 109-Unit SFR Construction in an Opportunity Zone; Phoenix, AZ
August 11, 2021
Transaction Description:
George Smith Partners successfully advised on $18,600,000 in construction financing for a 109-unit build-to-rent and Opportunity Zone transaction in Phoenix, AZ. This follows on the successful $7,100,000 JV equity financing GSP advised on. This single family for rent community will offer one, two and three-bedroom detached homes with upscale furnishings and private yards for most units. The Sponsor has five more transactions under contract. This was the first transaction for our Sponsor who is optimistic about the popularity and emerging trend of the build-to-rent niche.
Terms Confidential
- Advisors: Ed Steffelin Evan Kinne Jordan Lipton
