$39,900,000 Non-Recourse Ground-Up Development to 65% of Cost

Transaction Description: George Smith Partners placed the ground-up development of a 292 unit multifamily rental property located in a secondary mid-west market. Although a completion guarantee was provided from a deep-pocket Borrower, a repayment guarantee was not available to sign on the loan. Despite a lack of clarity for several Dodd-Frank provisions, our capital provider committed to funding up to 65% of actual costs based on their interpretation of the HVCRE constraints. Our well-heeled Sponsor has extensive experience in this market with this rental product and mitigated all concerns over its secondary location. Floating at 350 over LIBOR, the three-year non-recourse loan has two options to extend.