Transaction Overview
George Smith Partners placed an acquisition bridge loan for an 8-unit property in Leimart Park, California. The property was operating at below-market rents and the Sponsor’s business plan included increasing rents at market rates and renovating the property’s exterior and interior build. While the lender’s underwriting fully supported the low acquisition basis for the property located in the quickly developing market of Leimart Park, the Borrowers’ track record was not sufficient to sustain the high leverage loan request. GSP worked closely with the lender to get them confident on the group’s growth potential. Sized to 78% of total project cost, the interest-only loan carries a 12-month term and no prepayment penalty.
