Loan Type: Construction
Originally an aged property with deferred maintenance, this deal came to Grand Pacific with various challenges.
• Hermosa Beach has strict guidelines which prevent construction permits to be issued prior to demolition
• Possession of construction permits are funding conditions for most lenders
• Highly leveraged loan was requested
• Turnaround time was expected to be length
Despite the hurdles, Grand Pacific believed in the profitability of the project due to the desirable location along with an experienced developer.
• Provided a full term interest reserve
• Financed 72% LTV for acquisition of the property
• Separately funded 100% of hard and soft costs and a land draw
By providing flexible solutions, we were able to satisfy the borrower’s needs.