Funding Purpose
Tauro Capital Advisors was engaged on an exclusive basis to place a construction loan for the ground-up development of a 24-unit apartment building in the Hollywood Hills.
Property Description
The property is currently a 3-unit building to be demolished. The site has been owned by the sponsor since 2016 and is fully entitled and permit ready.
Sponsors
The sponsor has done value-add projects to over 45 properties now. They have over 25 years of experience in the acquisition and construction of different asset classes.
Challenges
- Sponsor wants to obtain a construction loan with great terms to do ground-up construction on a premier multifamily property in an amazing location.
Solutions
- Funding secured through a California based credit union that recognized the sponsor’s experience as well as the property’s potential and was able to give great terms.
Funding
- Loan Amount (LTV): $8,500,000 (75%)
- Interest Rate: 4.5%
- Amortization: 25 years
- Term: 10 years
- Recourse: Non-recourse
- Interest Only: 24 months
- Prepayment: No penalty
