Transaction Overview
George Smith Partners successfully arranged $1,680,000 for the acquisition of a two parcel assemblage in the Koreatown area of Los Angeles. The Sponsor is purchasing the land with the intention to entitle and build a 53-unit multi-family residential community. Given most capital providers’ standings on unentitled land, our Borrower required certainty of execution with this quick-close purchase. GSP identified a Los Angeles non-institutional fund familiar with this in-fill location and mapped out market trades for unentitled land while providing comps per unit for a traditional construction debt execution exit. Fixed at 8.9% for one year, this recourse loan has two options to extend should the Sponsor be unable to secure his permits with the first year.
