Transaction Overview
George Smith Partners sourced $14,425,000 in bridge financing for a newly constructed residential condominium building in California. The 12-month term financing was to replace the construction loan and provide time for the units to sell.
The loan is fixed at a rate of 8.9%, well below market rates for similar bridge loans. By comparison, most of the lenders in the market quoted a floating rate above 11%. The loan is non-recourse and required minimal due diligence from the Sponsor.
The loan provides a total of 57% LTC and 53% LTV. It closed in just under 40 days from the signed term sheet.
