Transaction Overview
George Smith Partners arranged pre-development financing for a parcel of land strategically located one block from Hollywood Boulevard, in Hollywood, California. The land is fully entitled for the ground-up development of 28 multifamily units, with the potential for a density bonus as the parcel is located within a Transit Oriented Development district. The pre-development loan allowed the Sponsor to “cash out” appreciated equity to pursue other development projects and to use excess loan proceeds to finance the costs of density bonus application. The lender was able to get comfortable with the re-capitalization of the land with limited cash flow, due to the strong location, market fundamentals and experienced sponsorship.
