$9,000,000 Construction Financing for 28-Unit Apartment Building; Los Angeles, CA

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

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