Transaction Overview
GSP’s secured the $13,000,000 Joint Venture equity investment for the ground-up re-development of a Carlsbad luxury condominium project. Malcolm Davies developed an ‘Equity Introduction Program’ to marry the needs of sponsors requiring equity capital with investors prior to a ‘pre-identified’ project to lay groundwork and help mold a mutually agreeable platform. The program objective is to expedite the ‘chase to equity’ on a project level once the asset has been identified. Equity relationships inherently take time to mature, particularly as we continue in the recovery cycle of the real estate market. Mr. Davies introduced the capital to the developer several months prior to the introduction of this opportunity.
Challenge: Our Sponsorship acquired an existing 51-Unit Apartment community in Carlsbad, California. The purchase included entitlements for the construction of a 35-Unit luxury condominium property. Traditional acquisition capital to acquire the apartments was insufficient to proceed with the re-development plans of demolishing the existing buildings and proceeding with the construction of the condominiums.
Solution: The prior relationship established through GSP’s ‘Equity Introduction Program’ allowed the Sponsorship to quickly secure the equity investment and provide the needed capital for the Developer’s luxury condominium project. The new Joint Venture provided all of the needed equity capital to develop the opportunity.
