$2,150,000 Senior Construction Financing for a 5 Unit Small-Lot Subdivision Project in North Hollywood, California

Transaction Description: George Smith Partners successfully structured the ground-up construction debt for a 5 unit small-lot subdivision project near the North Hollywood Arts District. Sized to 70% of cost, the 18 month loan (with six-month extension option) is priced at PRIME + 0.75% with a 5.25% floor rate.

The Project consists of large three story units (1,750 SF+), with attached two-car garages and open floor plans. Product of this quality is in high demand in the area, but the small-lot format is new to the North Hollywood area. It was incumbent on GSP to support the value with market data and new construction. GSP identified a local construction lender with an understanding of the Los Angeles market, and an appetite for small-lot product.