JV Equity/Pref/Mezz

Transaction Description:

George Smith Partners successfully placed the land acquisition senior loan and JV equity for 57.62 AC of vacant and unentitled land in Cibolo, TX (suburb of San Antonio). We went out to 40+ sources and the Lender loved the site and was aggressive by bringing the effective financing between debt and equity to about 78% LTP. The deal is in the early stages, with no clear exit plan and most lenders were not comfortable with taking on that risk. Initially, the Sponsor was under LOI to flip 30 acres to a tech-related entity post close, however, that fell through when we were already under app. Regardless, the site was highly favored after putting their feet on the ground and closed on the original structure.

Transaction Description:

George Smith Partners is pleased to announce the arrangement of $23,750,000 of LP JV-Equity for the ground-up construction of a 155-unit build-for-rent community in Loudon County, Virginia. The Sponsor originally engaged GSP to capitalize the land from purchase to finalization of the site plan that would be sold to a homebuilder. As headwinds from rising interest rates started affecting homebuilders’ price indications, the Sponsor decided to pivot into developing all 155 units as rental units with a Limited Partner. Through GSP’s deep relationships and the Sponsor’s expertise in development, the transaction changed in scope and direction ending in a great partnership and transaction for the Sponsor.

Transaction Description:

George Smith Partners successfully advised on $21,600,000 in construction financing and $10,700,000 in JV Equity for the development of a 142-unit built-to-rent community in Savannah, GA. The Project features 142 detached single-family homes on a 66.15-acre site. The homes will feature three to four bedrooms with an average square footage of 1,500 across four distinct home styles.

GSP worked through several strategies with the Sponsor to source the 65% LTC, non-recourse construction debt financing, and a 90% joint-venture equity partner for the ground-up, build-to-rent community. With our marketing efforts highlighting the strength of the Savannah rental market, this project received interest from several groups for both debt and equity.

The Sponsor projects vertical development to be completed by the end of this year and lease-up to be finalized by Q1 2025.

Transaction Description

George Smith Partners advised on $10,737,375 in Joint Venture equity for the ground-up development of a Built-for-Rent community in Savannah, GA. When complete, the Project will consist of 142 single-family homes on 66 acres of land. The Project is located just a 20-minute drive outside of downtown Savannah and just 3 miles northwest of Savannah Quarters Country Club and Blue Moon Crossing; a major retail center in the area.

GSP marketed the transaction broadly and found several equity providers interested in the Project. Time was of the essence as the Sponsor had closed on the land and was ready to start horizontal development. GSP worked with the Sponsors to pick a group that could move quickly and help share cost overruns. Construction is expected to take 36-months and for the Project to be completed and leased up by Q1 2025.

Transaction Description:

George Smith Partners successfully arranged a total of $46,890,000 in non-recourse debt and joint venture equity financing for the ground-up development of a single-family build-to-rent community in Phoenix, AZ. The Project spans approximately 14 acres and will feature 185 units across 150 stand-alone residential buildings located just 15 minutes west of Downtown Phoenix. The financing capitalized the acquisition of the development and related construction costs.

The Sponsor, a top tier homebuilder based in the Southwest, identified the site as an ideal candidate for re-entitlement to residential, and worked alongside the City to fast-track the change of use. The development team recognized the top-tier investment potential of the site given that build-to-rent product has been the fastest growing asset class in the U.S. housing market. Demand has grown exponentially as new ground-up single-family rental communities in the Phoenix area are not only averaging high absorption rates, but they are also achieving 42% rent premiums over neighboring garden-style apartments. GSP was able to identify a non-recourse construction lender with strong local knowledge that understood the high value of the re-entitled land, the strong local need for rental housing, as well as the Sponsor and joint venture equity partner’s extensive background and expertise in the BTR space.

Transaction Description:

George Smith Partners successfully secured a combined $55,500,000 in non-recourse debt and JV equity financing for the development of a ground-up, single-family, build-to-rent community in Tucson, AZ. Spanning 17.1 acres, the Project features 225 units across 168 stand-alone residential buildings and is part of a multi-phase master planned community (expected to span approximately 4,800 acres). The financing allowed for the acquisition of the development site and an anticipated groundbreaking in Q1 2022.

The Sponsor, a best-in-class homebuilder based in the Southwest, identified the site given its strategic proximity to Tucson’s fast-growing tech corridor. Build-to-rent communities have gained significant traction during a time where vacant rental units are being absorbed in less than 15 days in the Tucson submarket. The Sponsorship team recognized the substantial value behind the grand vision of the master planned community, supported by local knowledge and industry expertise in BTR developments. GSP was able to identify a non-recourse construction lender who not only understood the rapidly growing demand for rental units in a high-growth submarket, but also the Sponsor’s ability to execute on the business plan. GSP was also able to identify a joint venture equity partner that is actively targeting new investments in the BTR space nationwide.

Transaction Description:

George Smith Partners successfully placed $39,000,000 in construction debt and advised on $20,000,000 Limited Partner equity for the ground up construction of 137-unit mixed-use development with ground floor retail in Midtown Sacramento, CA. The Project is the second asset that GSP has structured both debt and equity for a sequence of planned multifamily developments. Pricing for the non-recourse construction loan tightened from the first transaction six months ago.

The site will be developed into a seven-story building consisting of six levels of rental units, parking, and ground floor retail. Situated in Midtown, Sacramento’s trendiest neighborhood, the Property is walking distance to restaurants, shops and is conveniently positioned near the rail station and a local highway. The area has increasingly attracted significant public and private investment due to its proximity to employment hubs and lifestyle amenities.

The capital markets were weary of ongoing supply chain and increasing construction costs. GSP worked with the Lender and equity investor to structure contingency levels that were acceptable to both. The Sponsor was provided with competitive, non-recourse construction loan and an investor that could grow with their future development needs.

Transaction Description:

George Smith Partners successfully advised on $47,000,000 in construction financing and $16,500,000 in JV Equity for the development of two multifamily communities, totaling 213 units with 184,900 of net rentable square feet located in Garden City, a submarket of Boise, ID. The Sponsors have a long-term bias toward the market, having completed over $75,000,000 in financing in the area. This transformative Project is a key component of their overall master plan and vision for Downtown Garden City.

GSP worked through several strategies to source the right non-recourse financing terms and joint-venture equity partner for the ground-up multifamily community. Ultimately, GSP successfully obtained several financing options. The Sponsor selected a life-company lender with exceptional terms and a joint venture equity capital partner with a long-term partnership vision.

The Sponsor projects a timely delivery and lease-up period of the Project in late 2022. The demand for housing remains robust in Garden City due to the continued tailwinds, driven by the influx of individuals seeking housing in Idaho.

Transaction Description:

George Smith Partners successfully placed high-leverage combined 1st and Pref Equity financing to 90% LTC for the acquisition of a 26-unit multifamily community in San Diego, CA. The 5-building 1940/1980’s Project will be repositioned and will require significant upgrades to all improvements more than $40,000/per unit. The Property is 100% occupied and the Borrower’s business plan includes “Cash for Keys” to remove all existing tenants, complete renovations and increase rents by an average of 100%. Stabilization is projected well within the 2-year term of the financing. The Project is part of a large portfolio of similar value-add multi-family repositions completed by the Sponsor in the San Diego area.

Transaction Description:

George Smith Partners placed a $2,100,000 Co-GP investment on a proposed 250-unit multifamily development site in Phoenix, AZ. The land is under contract with entitlements completed and development approvals underway. The Project will be a resort-style community comprised of studio, 1, 2 and 3-bedroom units in a farm-style design offering a clubhouse amenity, fitness gym, outdoor recreational areas as well as attached and detached garages. The Project is located on a main intersection in one of Phoenix’s emerging suburban villages with 15-minute access to downtown via the recently opened Loop 202. This area is served by over 300,000 square FEET of national credit big box, grocery anchored and service retail. The Co-GP investment will allow the Sponsor to complete the predevelopment phase to shovel ready. It will also allow the Sponsor/Developer to collect 100% of its developer and construction management fees. The estimated project cost is $60,000,000. George Smith Partners has been exclusively engaged to arrange the entire capital stack for the next phase of the Project.

Transaction Description:

George Smith Partners successfully placed $10,000,000 of joint venture equity for the construction of a 134-unit workforce housing development in a tertiary Mountain State market. There is considerable demand due to the quality of life and a D1-university in close proximity. GSP structured a 90/10 co-invest with an out of state developer with a robust pipeline.

Though guided to an expeditious close, the equity raise faced a few challenges. GSP brought the deal to market early in COVID when the economic ramifications of stay-at-home policies were uncertain. Additionally, the Project’s location in a tertiary market with only 50,000 people led to multiple groups being hesitant to deploy capital. However, the effects from COVID and the state’s pro-business economic policies eventually were shown to be a positive factor in multifamily demand.

Transaction Description:

George Smith Partners successfully advised on $7,100,000 in joint venture equity financing for a 109-unit build-to-rent and Opportunity Zone transaction in Phoenix, AZ. This single family for rent community will offer one, two and three-bedroom detached homes with upscale furnishings and private yards for most units. This was the first transaction for our Sponsor who is optimistic about the popularity and emerging trend of the build-to-rent niche.