Rate: 4.47%
Term: 12 Years
Amortization: 3 Years of IO, followed by 30-year amortization
LTC: 75% LTC
Prepayment: 11.5 years Yield Maintenance
Guarantee: Non-Recourse
George Smith Partners arranged $12,122,000 of non-recourse, acquisition and renovation financing for a 281-unit multifamily apartment in Jacksonville, Florida. Constructed in 1975, the property consists of 35, two-story, garden-style residential buildings with an average unit size of 728 square feet. Our Sponsor purchased the property to bring rents to market by renovating 211 units and investing in deferred maintenance, common areas, and additional amenities. GSP identified a capital provider comfortable with the Sponsor’s experience, the organizational structure, which included crowd funding and the property management team’s local expertise. During due diligence, it was discovered that the aluminum wiring may have been installed improperly so GSP sourced and worked with a licensed electrician to certify a past electrician’s work. Sized to 75% of purchase, the fixed rate permanent loan was locked at 4.47% for 12 years. The loan will amortize over 30 years after three years of interest only.
Advisors
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Steve Bram
Managing Director & Principal / GSP Co-Founder
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David R. Pascale, Jr.
Senior Vice President
Related Financings
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$4,517,000 Acquisition of a Multi-Tenant Retail Center, Villa Park, IL; Non-Recourse
April 1, 2020
Transaction Description:
George Smith Partners secured $4,517,000 for the acquisition of a multi-tenant, retail center in Villa Park, Illinois. The non-recourse permanent loan is fixed at 3.75% for ten years with full-term interest only and a defeasance prepayment penalty structure.
One of the tenants was a newly opened gym franchise with no historical sales information for this center. Also, during the loan process, the Seller was finalizing a subdivision of the parking lot which required multiple levels of municipality approvals.
GSP identified a capital source who understood the strength of the asset, the experience of the Sponsor and its desirable suburb location, which is 20 miles outside of Downtown Chicago. The Capital Provider worked through the timing of the issuance of the subdivision approval and was able to close as soon as the approval was finalized. The efficiency of our Capital Provider allowed the Sponsor to be able to rate lock and close as soon as the approval was stamped, taking advantage of the low interest rate environment.
Rate: 3.75% Fixed for 10 years
Term: 10 years
Amortization: 30 years
Prepayment Penalty: Defeasance
DCR: 1.30x
Interest Only: 10 years
Guaranty: Non-Recourse
Origination Fees: Par- Advisors: Matthew Kirisits
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Low Debt Yield, 3.77% Coupon Permanent Financing for the Acquisition of a Recently Developed Grocery-Anchored Retail Center; FL
September 25, 2019
George Smith Partners successfully placed $14,690,000 in non-recourse, ten-year fixed rate first mortgage debt for the acquisition of an approximately 54,000 square foot, 96% occupied, recently developed retail center in Western Florida. An investment-grade grocery anchor on a newly signed long-term lease comprises approximately 75% of the collateral. The anchor has no sales history at the Property and is not required to report sales going forward. GSP sourced a lender to provide full term non-recourse Interest-Only financing subject to a low 7.35% debt yield. The 65% leverage loan has a 3.77% fixed coupon over the ten-year term.
Rate: 3.77%, Fixed
Term: 10 years
Amortization: Full Term Interest-Only
Loan to Value: 65%
Prepayment: Defeasance
Lender Fee: None -
$7,600,000 in Non-Recourse Permanent Financing for a Single Tenant Medical Office Property with 100% Lease Roll During the Loan Term
March 6, 2019
Transaction Description:
George Smith Partners secured $7,600,000 in non-recourse permanent acquisition financing for a 38,000 square foot medical office property in Lowell, Massachusetts. The Property was 100% leased to a single tenant with strong credit but with only five years of remaining lease term. Despite the limited lease term, the Sponsor sought long term permanent financing that exceeded the lease term, which is difficult to obtain.
After an extensive marketing effort, George Smith Partners sourced a national lender with a favorable view of medical office properties and a history of providing permanent financing on properties with significant near term lease roll. Sized to 65% of value, the 10-year fixed-rate execution is non-recourse and amortizes over 30 years. The interest rate was fixed at 5.12% at closing or 242 basis points over the 10 Year Swap Rate.
Rate: 5.12% Fixed (Spread of 242 basis points over 10 Year Swaps)
Term: 10 Years
Amortization: 30 Years
LTV: 65%
Prepayment: Defeasance
Guarantee: Non-Recourse- Advisors: Evan Kinne