$20,900,000 Acquisition Financing for a Historical Hollywood Mixed Use Property

Transaction Description 

George Smith Partners successfully arranged a $15,800,000 bridge loan for a newly constructed 91-Unit apartment complex in the Inland Empire. The complex is age restricted for independent senior living, 55 and over. Amenities include resort style pool, spa/hot tub, fitness center, recreation room, BBQ-Picnic area and hair salon. Demand has been strong as lease up began in May and the property is expected to be fully stabilized over the next few months. The financing allows borrower to push income and time an agency perm loan as rates (hopefully) decline.

Transaction Details: 

 George Smith Partners successfully arranged bridge financing for the lease-up of a medical office building near the brand-new Providence Cedar-Sinai Tarzana Medical Center which opened at the end of 2023. The building was originally traditional office.  The Sponsor allowed leases to roll and spent $5mm on an extensive renovation and conversion to 100% medical office.  Once the renovation was complete, the Sponsor received significant tenant interest. Now that the building is almost fully leased, the subject loan will allow the Sponsor to complete the tenant improvements and stabilize the property.  The subject loan was competitively priced at P+0.25% and provides a mini-perm option once the property is stabilized. 

Transaction Description:

George Smith Partners successfully arranged a $22,000,000 loan for 92 acres of entitled land in Apex, a pioneering new growth area in a Western State. While some of the adjacent land has recently traded, utilities and roads are currently under construction. The Sponsor will build over 1 million square feet of industrial buildings and is currently talking to potential equity partners. The Sponsor had retained a national mortgage brokerage company that was unable to locate any financing for the Sponsor. The Sponsor approached GSP eight weeks prior to their maturity date to assist in the refinance. GSP completed a full marketing and identified two competitive lenders that could reach the desired proceeds level and close quickly. One of the lenders had significantly more local market experience providing more surety of close.

Transaction Description:

George Smith Partners arranged $9,000,000 in bridge financing to refinance a single-tenant office property in the Inland Empire. The Property has been nearly 100% leased to a county entity for 20 years, with lease renewals every 5-7 years. The Sponsor is leaving the unused space vacant in order to attract a single-tenant government lease buyer. GSP had arranged CMBS financing on the property in 2012 that came due in late 2022. Due to the timing in getting a new lease executed, the Sponsor asked for and received a short extension from the lender/servicer. GSP sourced a bridge lender that was poised to fund upon execution of the lease and estoppel. The loan paid off the existing loan and provided funds for tenant improvements mandated in the lease extension. It also gives the Sponsor maximum flexibility to sell or refinance over the next 2 years.

Transaction Description:

George Smith Partners successfully advised on the placement of a $1,850,000 cash-out refinance of a 72,471 SF commercial condominium comprising 4-levels of public parking and storage facility located within a 38-story residential high-rise in downtown Los Angeles. Although the property is stabilized, lenders expressed concerns over the condominium collateral, special-purpose, and negative cash flow history during COVID.

GSP was able to get a Lender comfortable with the sustainability of the net operating income vis-a-vie the Borrower’s ownership and near-stabilization of its 3-levels of commercial, retail, and office space located within the same project. The Sponsor’s primary objective was to refinance and lower their cost of capital which was previously at 9%. GSP was able to successfully replace the loan with a non-recourse bank loan at 5.14% fixed in addition to providing $350,000 in cash-out proceeds. The rate was locked at the beginning stages of the upward trend in interest rates and GSP was able to get the bank to accommodate an additional rate lock extension.

Transaction Description:

George Smith Partners successfully arranged $102,000,000 (approx. $2.75M/unit) in non-recourse, bridge financing for a 37-unit, ultra-luxury apartment building located in the heart of West Hollywood. The fully condo-mapped project features hotel-level service and amenities including daily breakfast, airport drop-off, wellness classes, cooking classes, wine tastings, entertainment lounge, private dining room & kitchen, screening room, fitness center, yoga studio and a leather-paneled bowling alley. The asset boasts some of the highest rental rates on the West Coast.

Located in one of Los Angeles’ most coveted retail and residential neighborhoods, this trophy asset caters to wealthy residents seeking an amenity-rich community with minimal maintenance and maximal convenience. The best-in-class Sponsor recognized the investment potential of an ultra-luxury product in a prized location—the revered “pumpkin patch” site in West Hollywood. In working with potential lenders for this financing, GSP was able to identify a capital provider who not only understood the as-is value and in-place cash flow of the operating multifamily asset, but also the potential future value as 37 individual high-end condos. The loan closed in 50 days from application.