Transaction Overview
George Smith Partners successfully placed the $3,496,000 senior construction loan for the ground-up development of 22 residential rental units in the San Fernando Valley. The subject will offer a mix of one and two bedroom units; 18 market rate apartments and 4 affordable housing units. Our Sponsor initiated site preparation prior to recording the construction loan, resulting in broken lien priority and preventing the title insurance company from binding the policy. GSP successfully worked with the Stewart Title Company to obtain an indemnity agreement allowing for the construction loan to be placed on the property, concurrent with the issuance of the title policy. Sized to 65% of the project cost, this recourse loan is priced at Prime + 0.75% with a floor rate of 4.75%.
