Land Acquisition Financing for 6.8-Acre Development Site; Denver, CO

Transaction Description:

George Smith Partners successfully placed $6,000,000 (66% Loan to Purchase Price) in acquisition land financing for a 6.8-acre site to be developed into 120 units in the Denver Metropolitan area. An infill site originally zoned agricultural; the Sponsor invested significant time and capital to change the site’s use to residential. The ability to develop attainable housing is the driver for both the city and the developer, as the finalized project will provide much-needed affordable housing to the increasingly expensive Denver Metro. With preliminary entitlements achieved, the Sponsor is working through civil engineering to receive final entitlements and sell the fully-entitled site to a well-known build-to-rent developer.

GSP was able to source debt with favorable leverage, a fixed-rate, and most importantly, without the need for an appraisal.

  • Term: 12 Months
  • Rate: 9.25% Fixed
  • LTV: 66%
  • Prepayment: No Prepay
  • Guaranty: Non-Recourse

Related Financings