$33,800,000 Construction Loan for 83-Unit Multifamily Property with 50% Co-living Units; Los Angeles, CA

Transaction Description:

George Smith Partners secured $33,800,000 of senior construction financing for the development of an 83-unit ground-up multifamily building in an infill Los Angeles location. The 83 units will be comprised of 50% conventional units and 50% co-living units. While the property is in an A+ location, many lenders were uncomfortable with co-living in general. GSP was not only able to find a lender that was comfortable with the product type but was also able to get to almost 70% of total project cost. The lender also gave the borrower credit for the entitled value of the land as opposed to their acquisition cost from the year prior. The land equity contributed a significant portion of the total equity required.

The construction loan was priced at Prime + 0.75% and the loan term is 18 months plus one 6-month extension option.

  • Rate: Prime + 0.75%
  • Term: 24 Months with Two 6-Month Options to Extend
  • LTC: 68%
  • Stabilized LTV: 55%
  • Guaranty: Recourse

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