Apartment Development in Downtown San Luis Obispo
StackSource arranged construction financing for a 16 unit apartment building in downtown San Luis Obispo in Southern California. The sponsor, a civil engineer and real estate developer from the Bay Area of Northern California, originally purchased the land in 2017.
The sponsor's local bank that has financed their previous real estate investments offered construction financing, but StackSource identified multiple financing options for higher leverage, and ultimately the transaction closed at bank-rate and 75% LTC. As a construction-to-perm loan with a 10 year term and 25 year amortization following the construction period, the sponsor has peace of mind without the need to refinance for a decade.