FINfacts™ XXIV – No. 366 | April 26, 2023

Prime Rate 8.00%
1 Month LIBOR 5.02%
6 Month LIBOR 5.40%
5 Yr SOFR Swap 3.25%
10 Yr SOFR Swap 3.12%
5 Yr US Treasury 3.49%
10 Yr US Treasury 3.42%
30 Yr US Treasury 3.64%

$8,500,000 Construction Financing for 35-Unit Apartment Building; Los Angeles, CA

Rate: Prime +1.25%, with a Floor of 6.50%
Term: 18 Months with One 6-month Option to Extend
LTC: 65%
Stabilized LTV: 60%
Guaranty: Recourse

Transaction Description:

George Smith Partners secured $8,500,000 of senior construction financing for the development of a 35-unit ground-up multifamily building in Los Angeles, California. GSP was sourcing financing when banks were getting increasingly conservative in their underwriting, with leverage falling and compensating deposits required. Given the strong track record of the developer, GSP identified a bank that was able to maximize the leverage with no deposits held at the bank. The Sponsor was also able to use land equity in the capital stack.

The construction loan was priced at Prime + 1.25%. The loan term is 18 months plus one 6-month extension option.


Steve Bram
Managing Director & Principal / GSP Co-Founder
David R. Pascale, Jr.
Senior Vice President
Allison Higgins
Senior Vice President
Nick Rogers
Vice President

Fixed Rate Construction Financing starting at 9%

George Smith Partners is working with a capital provider financing construction loans up to 70% of cost. Lending on all asset types with a focus on multifamily, mixed-use, industrial, warehouse, and storage, fixed rate pricing starts at 9%. For transactions from $10,000,000 – $75,000,000, terms are up to 36 months with extension options. This capital provider lends in primary and secondary markets nationwide and also provides bridge and mezzanine financing.   

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If you have an inquiry regarding George Smith Partners’ commercial real estate financing, please contact your GSP representative or Jessica Mania, at (310) 867-2974 or


Constellation Place
10250 Constellation Blvd., Ste. 2700
Los Angeles, CA 90067
Office 310.557.8336
Fax 310.557.1276
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