$3,000,000 Unentitled Land Loan at 76% of Purchase

Rate: 9.9% Fixed
Term: 18 months w/one-6 month option
LTC: 76%
Recourse: Carve-Outs
Fees: 1.5%
Prepayment: Nine month minimum yield; no exit fee

Transaction Description:

George Smith Partners placed the $3,000,000 acquisition loan for the purchase of an under-developed parcel in the Fairfax District of Los Angeles. Although improved with a pair of single family residences, the contract price assumes re-entitlement for residential development. GSP identified a non-institutional lender who underwrote the business plan assuming a re-entitlement for 30 rental units. Their exit will come from the pay-off funded by a to-be-identified construction lender upon re-entitlement. The non-recourse loan was sized to 76% of the contract price and is fixed for the 18 month term at 9.9%. There is one – 6 month option to extend.

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