Type of the loan: Construction Loan
The loan was to provide necessary funding to construct a four-story, 18-unit, luxury apartment in Korean Town, Los Angeles.
This deal came to Grand Pacific after being turned down by numerous conventional lenders. The client was seeking for 100% of construction cost for a 4-story, 18-unit apartment building. The client is not a seasoned real estate investor; moreover, she has limited experience in real estate development, especially ground-up construction of this size. Client lacks the ability to self-manage the project and has to heavily rely on the General Contractor.
Grand Pacific was able step in to provide the requested capital which includes 100% construction cost along with payment reserve for the full loan term and other fees associated with this transaction. Despite the hurdles, Grand Pacific was able to work with the client and assisted them with evaluating General Contractors since it will be the major driver of this project. Grand Pacific was able to underwrite this deal based on the selected General Contractor’s experience. On top of that, Grand Pacific understood the market demand for such apartments in the neighborhood and believed in the success of the project. Grand Pacific once again was able to deliver and execute the deal to satisfy the broker’s and client’s needs.