Transaction Overview
George Smith Partners placed the $3,000,000 acquisition loan for the purchase of an under-developed parcel in the Fairfax District of Los Angeles. Although improved with a pair of single family residences, the contract price assumes re-entitlement for residential development. GSP identified a non-institutional lender who underwrote the business plan assuming a re-entitlement for 30 rental units. Their exit will come from the pay-off funded by a to-be-identified construction lender upon re-entitlement. The non-recourse loan was sized to 76% of the contract price and is fixed for the 18 month term at 9.9%. There is one – 6 month option to extend.
