Rate: 11.75% Fixed
Term: 12 + 6 Month Extension
Origination Fee: 1.5%
Prepayment: Allowed with 6-Months Minimum Interest
Amortization: Interest Only
George Smith Partners secured an acquisition bridge loan for the acquisition of 10 acres in Laveen, AZ that will be developed with a Humphrey’s designed, 250-unit resort-style multifamily community. The $4,500,000 loan funded 100% of the purchase price plus an interest reserve. The site was put under contract in October 2020 “unentitled” but part of a 35-acre master plan community that includes a 16-bed hospital facility, Big O’ tires, and land for future senior housing development and restaurants. The 35-acre site has a “main and main” location in Laveen which has seen tremendous growth since the opening of Loop 202, a new freeway that connects Laveen and other South Phoenix communities with Interstate 10. The Sponsor fully entitled the site during escrow which included the annexation of 6 of the 10 acres from County to City property.
GSP also advised on the acquisition and procured over $2,000,000 of Co-GP equity to complete predevelopment of the site. GSP was able to find a non-recourse senior lender for the land acquisition that gave 100% value to approximately $2,500,000 of imputed equity. The Sponsor, a Phoenix-based development firm with over 60 years of development experience, will complete its value-engineering during the term of the land loan while GSP procures construction financing.
- No related financings.