Construction Financing for Retail Strip Center on a 35 Year Land Lease

Transaction Description: George Smith Partners successfully sourced the 70% of cost debt for the ground up construction of a multi-unit retail center located in South Los Angeles. Our client owns the leasehold interest in the land but holds an option to purchase the dirt at any time. Half of the retail units were preleased at close of escrow. Floating at WSJ Prime + 1.00%, the loan carries a 5.25% floor. The sponsors prior successful projects and strong development resume mitigated light liquidity and ground lease concerns. The fee purchase option upon development completion is anticipated to maximize imputed equity once built, leased and stabilized.