$24,000,000 Construction Loan Modification; Equity Returned to the Sponsor

GSP placed the 49 unit ground-up multifamily development loan for a well-heeled Sponsor in an affluent Los Angeles suburb two years ago.  Now nearing completion, market dynamics offer stronger support as a “For Sale” exit as condominiums than the originally anticipated rental housing option.  A condo map was in place prior to ground breaking.  Working with our construction lender, GSP negotiated release prices and an additional $3,680,000 funding for capital upgrades and a partial return of cash equity to the Sponsor.  The construction loan was extended to July of 2018 to allow for additional time for the individual unit sell-out.  Recourse is limited to the top 25% of the loan.