Transaction Overview
George Smith Partners arranged $3,500,000 in land pre-development financing for Phase II of a multifamily development project. The vacant lot will be developed into 92 workforce housing units located in the Koreatown area of Los Angeles, CA. The Sponsor is addressing the need for workforce housing in this area. GSP utilized a unique capital source to arrange highly favorable and flexible capital to allow the Sponsor’s long-term plan of developing workforce housing communities within Los Angeles. The loan represents 75% of the pre-development soft costs to bring the Project to permit-ready status. This is the second phase of the land development. The interest-only land loan was priced at 5.50%, with a 24-month term and one 6-month extension option. The extension option gives flexibility to the Sponsor should they be unable to pull permits within 24 months. There is additional flexibility with the loan structure with no prepayment penalty. Despite being on a strict closing deadline, GSP was able to identify a lender who could execute on terms and close within 30 days.
