VENTURA, Calif.— Tauro Capital Advisors Inc., (“Tauro”), a fully integrated financial services company with a diverse background in all aspects of commercial real estate, facilitated $52.4 million in construction financing for a 125-unit, 10,000-square-foot, mixed-use development located at 2055 N. Ventura Ave. in Ventura, CA.
Matt Bucaro, managing partner at Los Angeles-based Tauro Capital Advisors, with colleague Director Frankie Paparella, negotiated this transaction for Leap of Faith Partners (LOF), which had placed $14.5 million in common equity (90/120) for modular construction of the mixed-use development.
“The developer was originally sourcing LP Equity for this transaction which would have given them $6 million in cash out based on the imputed land value. The LP investor backed out of the transaction, so they hired us to source high leverage debt,” said Mr. Bucaro. “We were able to structure a senior lender + C-Pace which required no more cash to close and the sponsor keeping all of the profit.”
Added Mr. Paparella: “We are looking towards C-Pace financing as market volatility continues. With the FED putting pressure on short-term financing, debt funds are pulling back and Pace lenders are able to withstand the volatility with competitive terms. Lender and broker relationships are becoming more important and we anticipate seeing increased deal flow.”
Leap of Faith (LOF) is a developer, builder, and owner of residential and commercial real estate in Los Angeles and has more than 50 years of development, construction, entitlement, and financing experience cumulatively between LOF principles. The company, based in Los Angeles, specializes in state-of-the-art materials and modular building techniques. In the last five years LOF completed and sold 17 buildings in Los Angeles and is currently developing 132 residential units in California.
The total financing amount is $52,400,000, with $30,000,000 coming from a senior lender and $22,400,000 from C-PACe (StoneHill), on a 24-month term.
The ground-up development sits on a six-acre site and is in the final stages of entitlement, with groundbreaking expected in Q3 2021.
