- Rate: 4%
- Term: 3+1+1
- LTC: 55%
- Guaranty: Full Recourse
Transaction Description:
George Smith Partners secured $5,512,000 of senior construction financing for the development of a 6-story, 25-unit ground-up multifamily building. The Transit Oriented Development (TOD) multifamily Project is within three blocks of the Wilshire/Western Metro station situated in the Koreatown neighborhood of Los Angeles.
Compared to other areas in Los Angeles, Koreatown has seen a temporary influx of new units in the marketplace. The new supply, coupled with the pandemic, has slowed the rapid rental growth the sub-market has become known for. As a result, there was some hesitation from lenders. GSP generated a wide capital market that allowed the Sponsor to consider several options for the development of the Project. The strong financial position of the Sponsor, along with the extensive relationship with their general contractor, contributed to both pricing and leverage. The 36-month recourse financing is priced at 4% and structured with two, 12-month extension options.
