Background:

A developer of apartments in downtown San Diego had a substantial piece of equity financing fall out 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 SP for assistance. SP deployed a team of professionals to assess the development focusing on permits, construction risks and budgets, and the rental market. Simultaneously, SP and the developer negotiated an agreement whereby SP 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.
• SP’s skilled staff was able to underwrite and finance the transaction within several weeks.