Transaction Overview
George Smith Partners secured a $21,250,000 construction-to-bridge loan for a new 52-unit high-end multifamily community located in West Los Angeles on a busy prominent corner. The recourse loan will fund construction and transition into a perm loan with a total term of 10 years. The all-in-one loan represents 60% loan to stabilized value and 70% loan to cost and is structured with a 3-year (+ 6-month extension) interest-only period. The loan allows for open prepayment after year 4 without penalty. Prior to, the prepayment penalty is 2% in years 1 and 2 and 1% for years 3 and 4.
The site is comprised of 5 legal parcels assembled by the Borrower beginning in 2011 through 2015. The proposed Project will consist of 51 residential units and one ground floor retail unit in a Type III, 5-story building with two levels of subterranean parking for 72 cars utilizing a state-of-the-art automated parking system. The proposed unit mix includes studio, 1, 2 and penthouse units as well as 5 live/work units and 4 affordable rent restricted units. Penthouse units include unique/large, covered terraces as well as roof top decks with expansive skyline views.
GSP was able to secure a lender that underwrote to the proforma stabilized NOI despite the challenges faced during the pandemic especially with higher-end product.
