Multifamily

George Smith Partners successfully placed the construction debt financing for a 385 unit luxury Montclair apartment community. This follows the $25,000,000 Joint Venture equity component GSP sourced in March for the same Borrower. The FINfacts article detailing terms of the equity piece may be found in the in the archives section of our website. The “shovel ready lot” is adjacent to a major regional mall. The Property represents the pinnacle of the area’s redevelopment into a pedestrian promenade, catalyzed by MetroLink’s Gold Line light rail extension. The extension will provide direct access to Downtown Los Angeles. Challenge: The sponsorship required financing that precluded full recourse to the individual investors. The asset location, although text book fundamentally, is located in an area where construction lenders have not been active in recent years. Solution: GSP invested a considerable effort educating lenders; articulating the sponsors business asset guaranty program. By utilizing pledged liquid accounts, GSP was able to quantify the guaranty structure. GSP also demonstrated the strength of the local market for this project. Various economic factors and reports for multifamily absorption and rates were utilized to support this ground-up request. This data confirmed that development for this project is indeed viable.