Acquisition Construction Loan - Los Angeles, CA
Transaction Details
- Project Type: Value-Add Multifamily
- Loan Amount: $3,640,000
- LTV: 65% (As-Stabilized)
- LTC: 70%
- Term: 24 Months (plus 6-Month Extension Option)
- Rate: SOFR + 475 (8.5% Floor)
- Guaranty: Non-Recourse
- Structure: 100% Capex Funding
- Closed: Q3 2024
- Location: Los Angeles, CA
- Arranged By: Adam Dreyfuss and Tomer Sheelo
Transaction Overview
FOCAL arranged a $3.64 million acquisition and construction loan for the purchase and renovation of an existing 26-unit multifamily property in Los Angeles. The business plan included immediately renovating six vacant units, funding three additional unit turns over the loan term, and constructing three new ADUs to increase the property to 29 units and create additional value.
With the sponsor undertaking his first multifamily project and still assembling the full equity commitment, FOCAL also joined the transaction as co-GP, investing alongside the sponsor and bringing in trusted construction and property management relationships to support execution. FOCAL structured a 70% LTC, non-recourse loan at SOFR + 475 bps, with a 65% as-stabilized LTV and 100% of the project's capital expenditure budget funded by the lender. The 24-month loan included an additional six-month extension option, providing sufficient runway to complete the renovation and ADU program and stabilize the asset.
The financing was arranged by Adam Dreyfuss and Tomer Sheelo of FOCAL, a Beverly Hills-based commercial real estate debt and equity advisory firm arranging financings nationwide.
About FOCAL Advisory
At FOCAL, we are dedicated to empowering our clients through comprehensive real estate advisory services tailored to meet the complexities of today's market. We specialize in market analysis, due diligence, asset management, transaction support, and innovative financing solutions, so that each investment decision is strategic, data-driven, and aligned with our clients' long-term goals.
Every real estate project carries its own unique financing requirements. Our tailored financing solutions provide flexible, efficient, and strategic funding options aligned with the specific needs of each investment - drawing on a broad spectrum of capital sources, from institutional funds and CMBS to agencies, local banks, and private money lenders, on transactions nationwide.
Contact the capital markets team - Adam Dreyfuss (DRE 02243085, adam@focalinvest.com) and Tomer Sheelo (DRE 02144916, tomer@focalinvest.com) · (310) 929-6959 · 150 S Rodeo Drive, Suite 100, Beverly Hills, CA 90212.
More Closed Transactions
$1.5M Construction Financing in Lake Havasu City, AZ · $2.15M Acquisition Bridge Loan in Manhattan, NY · $1.1M Owner User Perm Loan in Pomona, CA. Financing like this: Construction Financing.
All closed transactions · Capital Markets & Debt Advisory