Transaction Overview
Steve Bram, Allison Higgins and Brian Asheghian successfully arranged an institutional $8,125,000 acquisition bridge loan for an unentitled, three acre site in the Koreatown neighborhood of Los Angeles. The loan allowed the Sponsors to acquire and entitle the land for construction of 225 apartment units. The current use of the site was obsolete so lenders had a difficult time getting comfortable with the unentitled status of the property since there was no fall back use. While most capital providers were pricing around 9% given the risk to entitling, GSP identified an institutional lender that was comfortable in the Sponsor’s business plan given his successful track-record. Fixed at 5.0% for 18 months, the 50% of purchase price loan is full recourse to a warm body. There is no prepayment penalty or exit fee.
