Transaction Overview
George Smith Partners arranged a $30,250,000 floating-rate construction loan for the ground-up development of a 156-unit Class A garden-style apartment community in the Greenville MSA, SC. This is a construction loan with a built-in rollover to a mini-perm (One Time Close) term upon stabilization.
The loan represents approximately 70% of the project's $44.5 million total cost, providing the Sponsor with efficient leverage on a ground-up development. This opportunity involved a tax abatement with a renovation of an existing mill that allowed the municipality to issue historic tax credits in addition to state and federal tax credits. GSP structured the financing to accommodate a subordinated tax credit bridge loan to the senior construction loan, reducing the Sponsor's required equity to $7.35 million from an initial $14.25 million. GSP also secured two 6-month construction extension options, the first tied to substantial project completion and the second to achieving a 1.25x DSCR for two consecutive quarters, along with a rate step-down upon conversion to the 12-month OTC term, aligning extension flexibility and pricing with the project's lease-up and stabilization timeline.
