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GSP/Rifkind Capital Advisors, aka The GSP “Rapid Deployment Force” Arrives Back From Deploying over $70,000,000 in 4 transactions in the Southeast in Two Weeks! Plus Resort developments on the Cabo San Lucas, Sun Valley and Park City…
$38,750,000 Land Acquisition Loan, Destin, Florida. This loan was for a prime development parcel on the Florida gulf. Our borrower, a prominent Atlanta-based developer, went in contract one year ago for $61,500,000. During this period, he took the parcel from zoned and unentitled to fully entitled with a development permit. The permit allows for 131 home sites and 105 multi-family units, most of which are ocean front or ocean view. The borrower’s institutional lender got cold feet at exactly the wrong time. With over $6,000,000 in non-refundable deposits and competing offers for 50% more on the table, the seller was hoping our borrower would fail to perform. We were called in on a Thursday and by Tuesday we had flown to see the property and committed to fund in the same week to allow our borrower to preserve the opportunity. Terms: (1) 5 Year Fixed Rate; (2) No prepayment penalty; (3) Non-recourse. (David Rifkind)
$22,300,000 Land Acquisition, Pensacola, Florida. Another opportunity play where our client bought one of the last, true in-fill parcels in the path of development. We added value by providing certainty of close to secure the opportunity. Our developer client spent most of the escrow period dealing with an institutional lender and private equity. The complicated transaction process put the purchase in jeopardy. During the escrow period, the property value increased dramatically and we were able to finance virtually 100% of the acquisition costs for far less than the cost of preferred equity. We completed this transaction in 10 working days. (David Rifkind)
$10,000,000 “Rescue Line”. This deal was completed 15 hours from initial contact to funding! Collateralized by five properties in the South Eastern US. In a month of “saves” here is the one that we are most proud of: A well-known and talented South East developer had five 5-Star apartment communities on contract for purchase from a name brand institutional seller. He had $12,000,000 of non-refundable cash up. The developer secured a 90% of cost acquisition loan through a private securitized transaction. The loan amount was $240,000,000. At the last moment, the lender required our client to contribute another $10,000,000 of equity. Disappointed but undaunted, our client complied. Just when the transaction was set to close the rating agency balked and stated that the borrower was using all his excess liquidity therefore affecting the credit rating of the transaction. We were called in to create $10,000,000 of liquidity that had to be deposited in a “New York Bank” within 48 hours or the transaction was going to unravel along with our client’s enormous earnest money deposits. We immediately analyzed our client’s entire portfolio and arranged a cross-country red-eye to tour five other properties to be used as collateral. During the tour, loan documents were drawn and we funded $10,000,000 prior to the 4 PM deadline, allowing the portfolio transaction to close successfully. (David Rifkind)
$5,000,000 Permanent Loan for Abercrombie & Kent Distinctive Retreats. As featured in the July issue of Forbes Magazine, A&K Distinctive Retreats is the ultimate destination club affording its exclusive clientele the use of some of the finest estate properties around the world. GSP/R financed a mountain home in Sun Valley, ID and two beach front villas in Cabo San Lucas for A&K. This is challenging financing because of the unique use and ownership structure. We found several flexible solutions for A&K to overcome the unique nature of these transactions. Terms: (1) 6 year fixed rate; (2) Non-recourse (David Rifkind)
$6,000,000 Development Loan for the “King Road Estate”, Park City, UT. In another highly unusual transaction, we provided a financing solution for a spectacular 53 acre, private ski-in, ski-out estate that will encompass over 20,000 sq. ft. of improvement. The seasoned Park City developer will sell eight 1/8th fractional ownership units. Buyers will have access to unique, private ski estates in the North America. This luxury property is nestled between the two main runs, halfway up the mountain and only 5 minutes from town. Our loan refinanced the maturing existing debt and provides funds for all grading and infrastructure to create a ready to go building pad. We estimate the value of the fully served and graded pad to exceed $15,000,000 because of its one-of-a-kind nature. GSP/R will bid on the vertical construction if the developer opts for additional financing. (David Rifkind)
Use GSP/Rifkind’s quick-close capability to create value in your transaction. For more info, contact David Rifkind (ext. 130, drifkind@gspartners.com)
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