George Smith Partners arranged $2,546,000 in permanent debt for a five-unit luxury multifamily project in Hollywood, California.
The property received certificate of occupancy and was fully leased as the construction loan neared its term.
Built adjacent to Paramount Studios, luxury rentals of this quality are not common in the area. Although the property recorded full occupancy, due to its limited operating history and lack of comparable properties, securing the fully requested proceeds was challenging, according to George Smith Partners.
In order to retain proceeds for its sponsor, the firm says it supported the high dollar per unit loan request with substantial market data.
The sponsor secured 100% of total construction cost financing at an interest rate of 3.61% fixed for five years with 15 years floating thereafter.