| Transaction Description: GSP successfully placed a $4,700,000 senior construction loan for the Ground Up Construction of a 75 Bed SNF. The New State of the Art SNF will serve a community that has not had a new SNF built in over 15 years. The Sponsor had planned on using EB5 Financing, but the process was too slow, expensive and time consuming. |
| Challenge: In a market where construction financing and equity are both tough to obtain, several developers look to EB5 Financing where you can obtain debt or equity from investors who want to earn a visa in exchange for creating US Jobs. Even with the Sponsor’s success in setting up an EB5 regional center, the process can take years, and cost hundreds of thousands of additional dollars. |
| Solution: GSP took control of the capital process and met with EB5 Brokers, as well our relationship lenders, and our lenders in the market. We were able to show one of our community development lenders the benefits of the project, and have them do high leveraged first mortgage financing to 90% of the capital stack. This allowed the project to move forward without costly third party equity. The financing allowed our operator to own the entire project with limited equity investment |
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| Rate: 7.75% Fixed Construction; 7.25% Perm |
| Term: 18 Month Construction; 10 Year Perm |
| Amort: 18 Month IO; 25 Years |
| LTC: 90% |
| Prepayment: 3,2,1 |
| Recourse |
| Advisor: Bryan Shaffer |
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