Transaction Overview
George Smith Partners placed a $45,000,000 construction loan and advised on $10,200,000 of LP equity for the first phase of a for-sale residential project in Silicon Valley, California with a repeat sponsor. The Project will be built in two phases. This first phase will have 50 townhomes providing much needed workforce housing to the area. The Project will also have some affordable units for sale.
GSP executed an effective and in-depth marketing campaign to help the capital markets understand the opportunity appropriately while finding solutions to various challenges that arose during the entire process. GSP marketed and highlighted the Project’s strength, the phasing nature of the build schedule, the projected sales prices and the forecasted upward trajectory in both sales price growth and sales pace growth. GSP was able to source capital providers on the Project that were comfortable with both the depth and experience of the Sponsor as well as believe in the continued growth of the Bay Area.
Ultimately, the professionalism and expertise of GSP on the deal coupled with the proficiency and extensive experience of the Sponsor allowed for a successful close.
