GE Property scores funds from Calmwater, BH Properties to finish San Gabriel project
Calmwater Capital has provided a limited liability company called The One Investments DE with a $32.3 million loan, to help finish construction of an 81-unit project in San Gabriel, according to a statement from Calmwater Capital on Tuesday.
GE Property Development, an Alhambra, CA-based brokerage and real estate development firm, is the manager of The One Investments DE, LLC.
GE also scored a $3.75 mezzanine loan from Steve Gozini’s BH Properties, according to property records obtained by TRD.
The new financing will allow the developer to complete The One, a multifamily building in San Gabriel located at 101 East Valley Boulevard, which will offer studio, one and two-bedroom apartments. It will include one floor of retail and four floors of multifamily housing.
This type of announcement is rare in an environment when financing is scarce and few lenders are willing to finance construction projects.
Additional financing will allow for “the necessary funds to address any contingency and deliver the property on time,” Larry Grantham, managing principal at Calmwater Capital, said in a statement. The project was 86% completed at the time of the loan closing, according to Calmwater.
The project is due to be completed in the second quarter of the year. It was originally scheduled for completion in 2022, according to a 2021 report by Urbanize LA.
The new loans were based on a floating interest rate, according to Northmarq, which arranged the financing.
“Given the tight lending environment, we had to get creative,” said Northmarq’s Zalmi Klyne, who helped broker the financing.
More of these types of transactions may follow.
“There are going to be quite a few rescue capital deals happening this year,” noted Shlomi Ronen, LA-based managing principal and founder at Dekel Capital. “We expect there to be quite a bit of demand for supportive capital, be it preferred equity or mezzanine, to be able to fill that equity gap.”