Transaction Overview
George Smith Partners successfully arranged $10,750,000 in preferred equity financing for the ground-up development of 61 condo units in an infill Los Angeles location. The Sponsor acquired multiple adjacent single-family homes and successfully took them through the entitlement process. The Sponsor arranged the senior construction financing up to 65% Loan to Cost with a local bank and was seeking additional debt to complete the capital stack. George Smith Partners located a preferred equity provider that give full credit for the imputed land value which put the preferred equity at 83% of total project cost and did not require any additional cash from the Sponsor.
