Transaction Description:

George Smith Partners successfully arranged $37,716,000 in bridge financing for the refinance of a 78-unit multifamily property in the prestigious Hancock Park neighborhood of Los Angeles. The Property includes 63 vacant units that are scheduled for full interior renovations as part of the Sponsor’s value-add strategy. The loan proceeds include construction dollars for the interior unit renovations, common area upgrades, and parking improvements.

Despite the challenging market dynamics, GSP was able to secure a highly competitive bridge facility that enables the sponsor to execute their business plan and revitalize the generational asset. Located in the heart of Hancock Park, close to the Larchmont Village shopping and dining district, the property is poised to become one of Los Angeles’s premier apartment communities.

The loan provides the sponsor with the flexibility to implement their renovation strategy and ultimately lease up and stabilize the property. GSP is proud to contribute to the redevelopment of housing in Los Angeles while arranging competitive and complex financing for real estate professionals.

Advisors

Brandon Asherian Director

Rate: 11.75% Fixed
Term: 12 + 6 Month Extension
Origination Fee: 1.5%
Prepayment: Allowed with 6-Months Minimum Interest
Amortization: Interest Only
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners secured an acquisition bridge loan for the acquisition of 10 acres in Laveen, AZ that will be developed with a Humphrey’s designed, 250-unit resort-style multifamily community. The $4,500,000 loan funded 100% of the purchase price plus an interest reserve. The site was put under contract in October 2020 “unentitled” but part of a 35-acre master plan community that includes a 16-bed hospital facility, Big O’ tires, and land for future senior housing development and restaurants. The 35-acre site has a “main and main” location in Laveen which has seen tremendous growth since the opening of Loop 202, a new freeway that connects Laveen and other South Phoenix communities with Interstate 10. The Sponsor fully entitled the site during escrow which included the annexation of 6 of the 10 acres from County to City property.

GSP also advised on the acquisition and procured over $2,000,000 of Co-GP equity to complete predevelopment of the site. GSP was able to find a non-recourse senior lender for the land acquisition that gave 100% value to approximately $2,500,000 of imputed equity. The Sponsor, a Phoenix-based development firm with over 60 years of development experience, will complete its value-engineering during the term of the land loan while GSP procures construction financing.