Background:

A developer of apartments in Downtown San Diego lost a substantial component of their equity financing before construction was to commence. With a construction loan ready to close, building permits in place, and 50% of the needed equity still intact, the developer contacted Security Properties for assistance. Security Properites deployed a team of professionals to assess the development focusing on permits, construction risks and budgets, and the rental market. Simultaneously, Security Properties and the developer negotiated an agreement whereby Security Properties would infuse preferred equity to bridge the gap between the existing equity and the construction loan.

Highlights:

• The project was completed on schedule, on budget and to everyone’s satisfaction.
• Security Properties’ skilled staff was able to underwrite and finance the transaction within several weeks.