$4,900,000 Co-Living Construction Loan in Los Angeles, CA

Rate: LIBOR + 400
Term: Two Years + 1 Six Month Option
LTC: 70%
LTV: 60%
Guaranty: Recourse

Transaction Description:

George Smith Partners placed a $4,900,000 construction loan for a shuttered assisted living facility to be converted to a 42 bed co-living facility targeted toward young working professionals. As rental housing prices continue their rise many developers are addressing affordability with smaller units that offer common living amenities to maintain lower costs. The co-living concept of a singular bed/unit is popular in New York, Seattle, San Francisco and has a strong foot-hold in the Hollywood market of Los Angeles. Located adjacent to Downtown Los Angeles, the Subject Property proved challenging to comp as it is not located in Hollywood and co-living is a new concept in this market. Partially or fully furnished bedroom units are supported by a central communal kitchen. Some units will share a bath. Utilities are provided, including heat, cable and WiFi allowing residents to move-in with simplicity and ease. Social connections are encouraged through property gatherings and a movie room. A business center will also be offered to residents. This is the first co-living development for this sponsorship team. Priced at L+400, the two-year term was constrained by 70% of capitalization and 60% of “As-Stabilized” value. There is a six month option to extend for an additional 50 basis points.


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