9 – 7 – 11
Southern California Construction Loans
| Description: GSP successfully placed the $2,400,000 construction loan on a vacant parcel for the development of a luxury second home. The 30 year term loan is priced at 4.375% to 75% LTC. The loan allows for interest only payments for the first 10 years including the construction term, then amortizes over a 20 year period. |
| Challenge: The Borrower was very rate sensitive and needed to maximize loan proceeds, requiring quick-close financing with favorable prepayment terms. To accommodate their escrow commitment and close the land on time, the Sponsor necessitated a pledge to fund prior to obtaining the final building permits. |
| Solution: GSP drew on their extensive capital relationships to identify a reliable ground-up construction loan provider willing to offer an aggressive loan structure at favorable pricing. Funding occurred within 30 days of loan application. |
|
| Rate: 4.375% |
| Term: 30 Years |
| Amort: 10 Years IO, then amortizing over 20 Years |
| LTC: 75% |
| Prepayment: 1/2% Years 1-4; par thereafter |
| Broker: Malcolm Davies |
|
Related Financings
