![](https://www.gspartners.com/wp-content/uploads/2024/03/Bram-8.16.22.png)
Transaction Description:
George Smith Partners secured $9,000,000 of senior construction financing for the development of a 28-unit ground-up multifamily Building in Los Angeles, California. The Project will be a conventional 28-unit property with 4 stories, including 12 one-bedroom units and 16 two-bedroom units. The construction loan floats at a rate of Prime + 1%. The 75% loan-to-cost construction loan also comes with the option to convert to a 5-year mini-perm loan upon completion; based on the 5-Year Treasury plus a margin of 2.75%, with a 3.95% floor, eliminating any future financial risks. GSP sourced a Lender that was able to move efficiently and most importantly accommodate the Borrower’s development timeline and experience.
- Rate: Prime +1%, with a Floor Rate of 5.00%
- Term: 18 Months with Two 6-Month Options to Extend
- LTC: 75%
- Stabilized LTV: 65%
- Guaranty: Recourse
- Mini-perm Option: 5-Year Treasury + 2.75% with a 3.95% Floor