George Smith Supplies Large, $32M, Construction Loan to Buyer to Complete Multifamily Project
- Aug 18, 2010
Hollywood, Calif.— George Smith Partners, on behalf of an institutional client, completed a $32 million multifamily construction loan transaction.
The construction loan will be used to complete a 180-unit, five-, six- and seven-story multifamily project on La Brea Avenue and Hollywood Boulevard in Hollywood, Calif., according to Steve Bram, principal and managing director of George Smith Partners. Bram was assisted on the financing by Jonathan Lee, Vice President of George Smith Partners.
“This is the first large construction loan we have completed since the financial turmoil began.” Bram explains. “As a result, it was challenging to find a lender to do a large construction loan, particularly given the new supply of multifamily product that has recently come on line”.
The 180-unit Hollywood construction project is built over a three level, 465-car subterranean parking garage, with 14,000 square feet of ground-floor retail space.
The project was 70 percent complete when it was purchased, requiring a new loan to complete the construction and cover the lease-up period. The term of the loan is 36 months, with LIBOR-based rate of interest. George Smith Partners’ client is an institutional private equity firm that will complete and manage the project for its own account.