San Diego

George Smith Partners arranged the $2,680,000 non-recourse acquisition loan on a fully entitled 16 acre parcel of land in North San Diego County. Our Sponsor acquired the land to re-entitle for a higher density housing development for re-sale to a homebuilder. The loan was sized to 65% of purchase, priced at 7.75% over Prime. Challenge: Several capital sources viewed the Sponsor’s business plan to re-entitle the land within 12 months more as an unentitled land transaction than a re-entitlement opportunity. Due to the higher risk nature of re-entitlement and secondary market location, many lenders rejected the transaction or offered very low leverage with full recourse. Solution: GSP identified a lender who was comfortable with the business plan, land basis, and short duration that the loan would be outstanding given the Sponsor’s financial strength and previous land entitlement experience. There is no recourse beyond the standard carve-outs.