$42,500,000 Ground-Up Construction Loan for a 179-Unit Garden-Style Multifamily Project in Puyallup, Washington

January 2025

Transaction Description:

George Smith Partners successfully closed a $42,500,000 ground-up construction loan on a 179-unit garden-style multifamily project located in Puyallup, Washington. The project is composed of eight multifamily buildings and three retail buildings built on a ten-acre site. The Sponsors had been assembling parcels for several years in preparation for this development and engaged GSP to source a full suite of term sheets providing a spectrum of leverage and structure options. The closing period took place over 55 business days from date of term sheet execution.

The loan was structured as a construction-to-permanent loan, converting from interest-only payments to principle-and-interest payments at the earlier of 30 months or the property achieving a 1.20 DSC. The P&I payments are calculated using a 30-year amortization schedule. The Sponsors are eligible for an equity earnout once the property stabilizes.

Rate: 7.57%

Term: 120 months

Prepayment: No prepayment

Lender Fee: 1%

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