Transaction Overview
George Smith Partners structured a stretch construction debt facility for a 38-unit condominium development in a primary Midwest market. GSP created a two tranche facility with national capital providers who were knowledgeable about the location and marketplace, and comfortable with the Sponsor’s experience and ability to execute the construction project. GSP was able to leverage its relationships to create a favorable funding schedule and minimum interest calculation due to the potential rapid pay down schedule and favorable pre-sales. The total 80% loan to cost facility blended to a rate of LIBOR + 5.60%, over a three-year term with two 12 month extensions.
