Transaction Description:
George Smith Partners successfully arranged $22,955,000 of condo inventory financing for a 27-unit luxury condo property in Los Altos, CA. The proceeds were used to replace the existing construction loan and to provide additional terms to sell off the remainder of the unsold units. GSP received several term sheets and was able to negotiate attractive terms for the borrower.
The borrower is an expert in this submarket and has a proven track record of delivering high-quality projects. Their expertise and reputation allowed GSP to secure favorable terms that not only facilitated the refinancing of the construction loan but also provided the necessary runway to market and sell the remaining units. The loan was able to close within 30 days of a signed term sheet.
Rate: SOFR + 600
Term: 12 months, no minimum interest
Fees: 1% in, 0.65% out
Unit releases: 100% of net unit sales proceeds to be paid to the lender, subject to an average minimum principal paydown of $1,600/NSF with associated exit fees (“Minimum Release Price”). Upon the outstanding loan amount being less than $700/NSF on the remaining unsold MR units, the lender shall permit 100% of any proceeds above the minimum release price to be leaked to the borrower as long as the loan reserves are in-balance.
Guaranty: Non-Recourse
