![](https://www.gspartners.com/wp-content/uploads/2024/03/Bram-2.23.22.jpg)
Transaction Description:
George Smith Partners successfully arranged $59,900,000 in construction financing for a 180-unit apartment building in an infill Los Angeles location. The Sponsors are capitalizing on the San Fernando Valley’s 3% vacancy rate and very little brand-new apartment construction. While the Sponsors have significant experience in entitlements and apartment operations, this is their first ground-up development Project. The Sponsors were seeking maximum leverage on a non-recourse basis. The Subject Property is across the street from an apartment project that came online while processing the loan. The rents being achieved were above the Sponsors proforma rents which allowed the Lender to underwrite higher rents and increase loan proceeds during the loan processing. The additional loan proceeds were able to cover the escalating construction costs and increase the leverage to 80% of total project cost.
- Rate: 6.95% + SOFR
- LTC: 81%
- Term: 36 Months
- Guaranty: Non-Recourse