Transaction Overview
George Smith Partners successfully placed the $5,000,000 Joint Venture equity facility for a single family home developer focused on Los Angeles’ Small Lot Ordinance. This facility is structured to provide equity on an as-needed basis, functioning similar to a line-of-credit. The Borrower has the option to draw down equity for entitlement, construction, or both. Each transaction is sized individually, and equity can be split on an 80/20 or 90/10 basis, with a waterfall based on performance. Accrual rates on the equity vary and are contingent on risk. A $1,080,000 draw for an 11-unit small lot project located in Northeast Los Angeles has already been exercised. The Sponsor has four additional projects circled in their development pipeline and is actively looking to ramp up their portfolio.
