Northern California Bank with Life Company Pricing from $1,000,000 George Smith Partners is currently closing stabilized debt requests in Northern California with a regional bank local to that market. Ground-up construction requests are also being underwritten at this time. The capital source’s conservative credit culture allows them to price aggressively, often undercutting more arduous Life Company applications. Ten-year transactions to 60% LTV sized from $1,000,000 to $25,000,000 are priced from 4.35% – 5.00% fixed, and offer stepped-down prepayment. Their geographic lending market consists of The Bay Area north to the Oregon Border. Non-recourse financing is available to higher quality assets.

National Bank Funding 40 Year Amortization on Multifamily A national portfolio lender is currently funding 5 to 50-unit, Class A and B Multifamily properties to $10,000,000. The Lender may advance up to 70% LTV, with a maximum leverage of 80% on acquisitions. The recourse loans are fixed for 10 years in the 5% to 5.25% range prior to floating over LIBOR. All loans may self-liquidate over their term, but offer a step-down prepayment structure during the 10-year fixed rate term. Properties that are 15 years old and newer qualify for a 40 year amortization, while older assets receive the traditional 30 year schedule.

Regional Bank From 3.25% Fixed for Northern California Properties. GSP identified a Northern California Regional Bank currently funding high-grade multifamily and stabilized commercial properties.  Loan amounts range from $1,000,000 to $12,000,000, and pricing starts at 3.25% fixed for three years.  Five-year fixed coupons range from 4.75%-5.25%.  Construction and bridge/reposition financing is also available for traditional and special-use assets including elderly care and RV dealerships.  Geographic markets start at the Oregon border south to Fresno, inclusive of Reno and northern Nevada, with a strong presence in rural communities.

More Capital than Good Deals!   Liquidity is abundant in the private lending bridge market.  Several high net worth individuals and families have “suffered” loan pay-offs recently as more institutional capital returns to the debt market.  GSP is working with one particular quick-close individual seeking to redistribute capital.  Loan amounts will fall between $1,000,000 and $10,000,000, priced in the 7% to 8% range on cash flowing assets.  The interest-only loans will be for a term not to exceed 18 months to 60% LTV.  Higher LTVs are obtainable for strong recourse borrowers.  Commercial assets require a phase 1, although no appraisal or property condition report is needed for funding. Lender fees range from 1% to 2%.

Single Tenant Note Acquisition/Refinance A National Credit Company has rolled out an aggressive note acquisition/refinance program targeting predominately single tenant uses.  Single notes or pools of notes may be funded to 75% LTV and a 1.15 DCR.  Single notes will range from $5,000,000 to $15,000,000 with no size limit on portfolios.  Some multi-tenant transactions will be underwritten, although the majority of the revenue must come from a single tenant.  Assets may be owner-user or for an investor borrower.  Pricing will vary based on leverage, location, and credit quality.

Regional Bank Lending Up to 80% LTV in Southern California A Southern California Regional Bank is funding multifamily debt to 80% LTV.  Retail, office, industrial, and special use properties are leveraged to 70% – 75% of value. This Lender will consider underperforming assets with a below break-even debt coverage for an experienced operator.  Pricing starts at P+1% with a 5.25% floor; fixed-rate financing is currently unavailable. Typical structures contain a 5-year term and a 25-year amortization schedule. Loans above $15,000,000 will be considered on a situational basis.

Net-Leased Single-Tenant Financing from $750,000  GSP is working with a Southern California based bank currently funding stabilized net-leased assets nationwide. Strong franchisees will be considered although pads leased to corporate operators located in anchored retail centers are preferred. Available financing ranges from $750,000 to $3,000,000.  Pricing is fixed in the low 5s for the first 5 years, then rolls to a floating rate for the remaining 5 year term. Full recourse programs are available to 65% LTV, with non-recourse interest-only options to 50% LTV.  Flexible prepayment penalty structures are available and non-traditional uses (self-storage) will be considered by exception.

Life Company Debt from $1,000,000. GSP is working directly with a small Life Insurance Company currently funding permanent loans on stabilized assets from the Dakotas to Texas and West to the Pacific Coast.   This capital source will finance the four primary product types from $1,000,000 to $6,000,000 for three, five or 10 year terms, amortized over 30 years.   75% acquisition financing is available, 70% for refinances, both limited by a 1.30 DCR. A step-down prepayment is available for three and five year terms.  Ten year loans carry yield-maintenance pre-payment penalties.

Joint Venture Build-To-Suit Construction Equity from $500,000 GSP has identified a Joint Venture construction investor providing equity capital for ground-up build-to-suits pre-leased to credit and non-credit users nationwide.  Typical product types are franchised chain restaurants and medical uses including rehab “hospitals”.  Equity contributions can be as small as $500,000, with a maximum of $2,000,000 per project.  The equity investor will consider one-off transactions although portfolios are preferred.  A 20%+ IRR is required with a 10% developer co-invest.  Timing is usually 70 days from introduction to funding.  A sale of the asset at certificate of occupancy is typically required to obtain the IRR threshold.