Transaction Overview
George Smith Partners secured $5,625,000 of combined senior and mezzanine financing for the acquisition of a mixed-use property located in Koreatown in Los Angeles. The Property is located on a desirable corner and currently has 6 apartments over approximately 10,000 square feet of retail. The Sponsor acquired the Property with the intention of constructing a 157-unit apartment tower on the site. The Project is already entitled for multifamily and will receive a density bonus due to its Tier 4 TOC status. Final plans and permits will be completed over the next 9-12 months prior to groundbreaking.
The senior and mezzanine lenders provided proceeds that were sized to 75% of purchase price. The interest rate was 8.39% and the total financing had a blended origination fee of 1.35%. The 18-month, non-recourse loans are co-terminus and will provide the Sponsor ample time to ready themselves for the construction. Both loans closed in under 30 days from application.
