Funding Purpose
Ground-Up Construction loan for a multifamily co-living building in Los Angeles.
Property Description
13-unit (58 rented rooms) co-living development in the Koreatown community of Los Angeles. Building to be complete with superior amenities.
Sponsors
Experienced investor and developer with a similar project in the leasing stage in Hollywood. Net worth and liquidity support this transaction.
Challenges
- Co-Living construction loan request at start of COVID pandemic created lender uncertainty
- Sponsor’s initial organizational structure created series of lender challenges
Solutions
- Funding with local credit union that stayed patient throughout the process due to thorough communication with Tauro
- Sponsor requests were exceeded, and construction was able to begin
Funding
- Loan Amount (LTV): 70%
- Interest Rate: 4.5%
- Amortization: 25 Y
- Term: 2 Y
- Recourse: Non Recourse
- Interest Only: 18 Months
- Prepayment: Allowed
