$4,860,000 Post-Construction Van Nuys Multi-Family Refinance

Transaction Description:  Jonathan Lee arranged permanent financing for the construction take-out of a recently stabilized 23-unit apartment building in Van Nuys, California. The property received certificate of occupancy in July and was in lease-up when GSP was engaged. A $1,000,000 return of equity was advanced up and beyond the construction loan balance based on 30 days of stabilized occupancy.

Challenge: The Sponsors were challenged to stabilize the property to pro-forma rents within a short timeframe to meet the construction loan balloon date. A return of equity was requested for unrelated future development projects.

Solution: GSP showcased the strength of the newly constructed project through lease-up velocity, achieved rental rate targets, and successful management. These metrics allowed the Lender to become comfortable with the leverage point on a newly constructed, unseasoned asset in addition to the return of equity.