Transaction Overview
George Smith Partners arranged cash-out financing for developers of a high-end luxury home in Beverly Hills to pull out trapped equity and prepare for a future construction loan. The long-term goal was to obtain highly leveraged, non-recourse construction financing that will utilize the equity from this transaction. The first step was to capitalize the Property. The Property had a $4,400,000 as-is value and a $19,000,000 as-completed value. GSP obtained a $4,000,000, 90% LTC that will provide the ownership with equity capital.
In today’s market, it is challenging to find capital providers willing to provide high leveraged, cash-out financing for land. Using our relationships, GSP was able to identify a non-recourse lender who would provide highly leveraged, cash-out financing to 90% LTC. By completing the first stage of financing the ownership will have the needed capital for a larger future construction loan.
