Loan Type: Construction
Two Sponsors with over a decade of experience in construction proposed to build this 3 story apartment with 15 parking spaces. Before funding this deal, the following had to be considered.
• Borrowers were projecting higher rental income than comparables in the area
• City of South Gate was facing stagnant population growth
• The above factors combined, raised questioned if optimal occupancy rate would be achieved
After some consideration, Grand Pacific funded the requested construction funds with a payment reserve.
• We found that City of South gate has plans to revitalize their economy and projected that the demand would rise as a result
• Sponsor’s financials were deemed stable
Believing our Client’s experience and insight, we were able to support the construction of this unique real estate.