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| Transaction Description: GSP placed the cash-out refinance of a 521 acre land tract to be permitted for 921 single family residential lots, 434 multifamily units and an additional 270,000 square foot commercial project in Orlando, Florida. The two and a half year term is fixed at 5.85% with no personal repayment guarantee. Recourse is limited to a capitalized entity. |
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Challenge: Still 18 months from final permitting and actual site development, the Sponsor was seeking to increase his equity yield by appropriately leveraging the land. Traditional bank-style pricing was required yet a personal repayment guarantee was not available. |
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Solution: GSP identified a residential lender that understood the value in the land and became comfortable with the expertise and experience of the Sponsor. The Borrowers’ business plan was vetted through market research and the capital provider became comfortable that demand will only increase during the duration of the permitting process. |
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