SG Credit Partners provided $3.5MM high net worth guarantor loan to a real estate holding company.
The single-asset real estate holding company, which is owned by a high-net-worth technology executive, agreed to acquire a lakefront residential land parcel in a city. Although the guarantor had the asset base to fund the purchase with equity, much of their net worth was tied up in fully vested stock options that had punitive tax consequences upon conversion. Additionally, the seller was fatigued and wanted to close in fewer than three weeks, meaning conventional bank financing was not a viable option.
SG underwrote the real estate as well as the outside personal assets of the guarantor. Given the location and liquidity of the underlying real estate collateral, coupled with the strength of the guarantor’s personal balance sheet, SG was comfortable providing a high LTV loan. SG closed within three weeks from when the term sheet was executed.
