Tauro Capital Advisors was engaged on an exclusive basis to place debt for the development of 18 small-lot single family homes.
The project is located in the rapidly gentrifying neighborhood of Atwater Village. Properties to be developed under the Small Lot Ordinance guidelines.
The sponsor is an experienced real estate developer with other similar developments at different points in the process in the Los Angeles area.
- Sponsor looking for a Ground-Up construction loan with great terms.
- Lenders did not know much about this home type and worried about construction delays.
- Funding secured with a national bank that was able to give great terms based on the sponsor’s experience and their knowledge of this product type and construction.
- Loan to Value: 60%
- Interest Rate: Prime + 75 bp
- Term: 3 years
- Recourse: Payment guarantee
- Interest Only: 24 months
- Prepayment: Allowed