Transaction Overview
George Smith Partners successfully placed the $6,060,000 acquisition/bridge loan to acquire two adjacent, unentitled parcels in Beverly Hills, California. Our client’s plan is entitle it for condominium construction. The current tenancy provides some income but is significantly below break-even at 60% leverage. With little development experience and only one other commercial asset in his portfolio, the Borrower’s post-close liquidity and the residential market strength mitigated the underwriters’ exit concerns. Structured to 60% of cost, the loan is fixed for 2 years at 4.25% before options. This recourse loan does not amortize but does pay current from cash flow and Borrower contributions.
