Transaction Overview
George Smith Partners successfully renegotiated a $10,000,000 construction loan for a 15-unit multifamily property in West Los Angeles. The original fixed-rate construction loan was arranged in Q1 2020 with a debt fund. Pandemic-related construction delays pushed vertical construction back approximately one year, compressing the remaining loan term before the May 2023 maturity. Rather than securing additional equity, GSP determined debt restructuring was more cost-effective. The lender agreed to convert the loan into a one-year bridge facility with only a 50 basis point rate increase and the origination fee was waived on the restructure.
