Transaction Overview
George Smith Partners successfully placed a $12,130,000 ($247k/unit) construction loan to construct 49 townhomes for rent. The loan is floating rate at Prime plus 125 bps. with a floor at 5% and has a 2-year term with a 2-year mini perm extension. The Property will cater to higher income renters in the affluent Arcadia area of Phoenix, AZ. GSP leveraged its extensive expertise in the single-family rental sector to source options for the Sponsor who is a top tier private equity firm that has entered the build to rent space with several transactions.
The Project targeted a higher end renter (“renter by choice”) that wanted to live in an excellent neighborhood. Many other build to rent projects are targeted to a more affordable and “renter by necessity”. This higher end strategy was a bit more difficult to market, but the Project had strong sponsorship and the Lender had familiarity with the desirability of the specific neighborhood.
