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97% Financing; $39,650,000 Construction Debt and $18,750,000 Equity for 153-Unit Multifamily Opportunity Zone Development; Downtown Sacramento

All Terms Confidential

Transaction Description:

George Smith Partners successfully placed $39,650,000 in construction debt and $18,750,000 in limited partner equity for the ground up construction of an Opportunity Zone multifamily development with ground floor retail in Downtown Sacramento, at the peak of COVID. The challenges included uncertainty regarding COVID during the pre-vaccine period, political uncertainty, an offshore borrower, and California’s tenant friendly policies. Many investors were too cautious to make a commitment in the middle of COVID with no anticipated end in sight. These risks were offset by exceptional sponsorship, a strong market, and a well margined deal.
The 153-unit Project is the first in a series of planned multifamily developments in the region by Anthem Properties Group of Canada. GSP leveraged its expertise and relationships to find a lender to serve the Sponsor and push through an arduous due diligence process to an expeditious closing. GSP helped structure the partnership agreement to best serve Opportunity Zone taxation rules and ensure the most beneficial long-term returns between the Capital Providers and the Sponsor.

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