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$83,000,000 Bridge Financing for Pre-Certificate of Occupancy 250-Unit Class-A Multifamily Development; San Fernando Valley region of Los Angeles, CA

Rate: L+500 until construction completion, reducing to L+450 thereafter
Term: 3-year with two 1-year extensions
Amortization: Interest only
LTV: 75.0%
LTC: 79.9%
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners secured an $83,000,000 senior bridge loan for the construction completion and lease up of a mixed-use community consisting of 250 multifamily units and 6,600 SF of ground-floor retail in the San Fernando Valley, just north of Los Angeles, CA. The non-recourse bridge financing carries a three-year term at LIBOR + 5.00%, reducing to LIBOR + 4.50% upon the Project’s receipt of Certificate of Occupancy.

The loan provides proceeds for construction completion – anticipated to complete in early 2021 – while allowing for an extended lease up period prior to stabilization. The strength and track record of the Sponsor, coupled with the centralized location within the San Fernando Valley, ensured that the Project would complete and stabilize as anticipated.

Advisors

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