Calmwater Capital has provided Alhambra, California-based GE Development, Inc. with a $32.25 million construction loan for the completion of The One, an 81-unit multifamily development over 13,000 square feet of street-level retail in the Southern California community of San Gabriel.
Calmwater’s financing will be used to take out the original construction lender with a portion of the loan proceeds to be used to fund hard and soft costs needed to bring the project to 100 percent completion. The property was 86% completed at loan closing.
“Undertaking projects mid-construction inherently involves various uncertainties and challenges, which can be particularly complex to manage,” said Calmwater Managing Principal Larry Grantham. “With our construction experience, we were able to structure the loan to ensure the sponsor would have the necessary funds to address any contingency and deliver the property on time.”
Other members of the Calmwater team included Vice President Zach Novatt who heads the firm’s originations efforts in the Western United States and Senior Associate DaJuan Bennett.
The transaction included an additional $3.75 million in subordinate financing from a Los Angeles-based alternative lender in order to reduce the borrower’s equity commitment.
“The sponsor relied on our strength and relationships as a national bridge lender along with our knowledge of the local market,” added Novatt. “We were able to quickly understand the story behind the project and structure a loan to help the borrower meet its business goals.”
The One is being built on a nearly one-acre site at 101 East Valley Boulevard at the northeast corner of Del Mar Avenue, considered the center of San Gabriel’s commercial corridor. The One is directly across the street from the city’s landmark Focus Plaza, which is anchored by the popular ethnic grocery store 99 Ranch Market.
Due to the excellent visibility from the heavily trafficked intersection, the sponsor has already signed two retail leases and accepted two letters of intent (LOI), representing 70 percent of the retail space.
Zalmi Klyne and Karl Weidell in Northmarq’s Los Angeles office arranged the financing.
