|
TRANSACTION OF THE WEEK!!!
$10,000,000+ Working Capital Line and 100% of Cost Land Acquisition Financing For Prime In-Fill Assemblage Going Through Entitlements: In one of the most creative "Structured Financings" arranged by GSP, this transaction summary is subject to a Confidentiality Agreement. We can provide sufficient information to our readers to determine if they have projects requiring financing which may be similar in nature. The Property and the Pre-Development Status: Client has completed a complex multi-parcel assemblage of high density land in one of the strongest urban cores in the western U.S. The loan funded during the pre-entitlement stage. Once entitled, significant FAR value should be created if approvals are received for an approximate 1,000,000 sf mixed use development. To find an institutional lender that would fund 100% of the project costs, including the ability to take down land. The client did not want to give up a % of theThe Financing Request: profits or give up control. Underwriting Process: The lender did considerable due diligence. This included their in-house underwriting team which included MAI's spending several days with us reviewing the project, meeting with city officials, hiring their own 3rd party due diligence team including a national appraisal firm, etc. Downside risk was carefully evaluated. The developer's track record was a significant element in the approval process. Financing: $10,000,000+, 3 year term, 100% of costs, 2 pts, yield based on money drawn down (not on size of commitment), non-participating. Developer estimates the financing can be worth as much as $15MM by not giving up 50% or more of his position. (David Buxton, George Smith and Henry Bryan)
|
