March 2, 2016
Transaction Description: George Smith Partners structured the non-recourse ground-up construction financing for 18 luxury townhomes in the La Jolla Village neighborhood of San Diego. Designed to fulfil the demand for Class-A residential product, the townhome style development is centrally located in the heart of La Jolla and is only a few blocks from restaurants, shopping and the bluffs overlooking Torrey Pines and the Pacific Ocean. Sized to 65% of total development cost, the 24 month loan is priced at PRIME + 1.00% with a floor of 4.75%. A construction completion guarantee was provided although there is no repayment guarantee.
Challenge: The residential market in the area is extremely strong, but there is negligible velocity to provide new product comparables. Cash equity was not fully funded at recordation.
Solution: Market research was conducted to support sales prices per square foot from the limited residential trades that did execute. Demographics and asset quality supported larger unit footprints and thus the higher “all-in” exit prices. Our capital provider is active in this greater market area and is comfortable with the sell-out analysis. The Sponsor strength and experience in this product added additional comfort and allowed the Lender and Sponsor to fund the remainder of cash equity dollar-for-dollar, simultaneously with construction draws.
February 24, 2016
Transaction Description: George Smith Partners successfully placed the $3,496,000 senior construction loan for the ground-up development of 22 residential rental units in the San Fernando Valley. The subject will offer a mix of one and two bedroom units; 18 market rate apartments and 4 affordable housing units. Our Sponsor initiated site preparation prior to recording the construction loan, resulting in broken lien priority and preventing the title insurance company from binding the policy. GSP successfully worked with the Stewart Title Company to obtain an indemnity agreement allowing for the construction loan to be placed on the property, concurrent with the issuance of the title policy. Sized to 65% of the project cost, this recourse loan is priced at Prime + 0.75% with a floor rate of 4.75%.
Rate: WSJ Prime + 0.75%
Floor Rate: 4.75%
Term: 18 Months with One – 6 Month Extension
Amortization: Interest Only
Lender Fee: 0.75%
- Advisors: Jason Gaffner
January 19, 2016
Transaction Description: George Smith Partners successfully placed the $22,000,000 senior construction loan for a 121 unit apartment building in the Westlake neighborhood of Downtown Los Angeles, California. The project will offer unobstructed views of the Los Angeles skyline. There will be 107 market rate apartments and 14 affordable housing units. Sized to 60% of project cost, the non-recourse loan is priced at LIBOR+ 4.0% for the 40 month term.
August 27, 2015
Transaction Description: George Smith Partners successfully placed the $8,240,000, single-phase construction loan to build 14 condominiums in Carlsbad, California. Our Sponsor requested a high-leveraged, quick close execution for this acquisition but lacked sufficient liquidity for most institutional lenders. Private money yields were not palatable due to the strong coastal location. GSP identified a regional bank that mitigated liquidity concerns with the strength of the Sponsor’s development experience and the residential market strength. Structured to 72% of cost, the 18 month loan floats at 0.75% over WSJ Prime with a floor of 5.25%.
July 31, 2015
Transaction Description: JJay Brooks arranged the $3,950,000 construction loan for a 14-unit residential condominium development in Denver, Colorado. Located in an increasingly popular urban area, our Sponsor received ample interest in lining up pre-sales prior to ground-breaking. Sized to 72% of total cost and priced at P+1, repayment guarantees burn down to 50% of the outstanding loan balance upon Certificate of Occupancy and sale of units currently under contract. The 23 month loan term carried a ¾ point origination fee.
Rate: Prime + 1.00%
Term: 23 Months
Amort: Interest Only
Lender Fee: 0.75%
- Advisors: J.Jay Brooks
July 9, 2015
Transaction Description: George Smith Partners secured the pre-development and Phase I construction loan for the $240,000,000 Celebration Point mixed-use project in Gainesville, Florida. Comprised of over 1 million square feet of mixed-use retail, office, multifamily and hospitality, tenancy will included Bass Pro Shops, Regal Luxury Theater and the 137-key Hotel Indigo. Located on I-75 and Archer Road, the project will be adjacent to the University of Florida campus. This loan works alongside accommodative bond financing for a portion of the infrastructure and includes features that allow different project elements to be sold during the course of the development process. Phase I is slated to open in the fall of 2016. Sized to 54% of cost, the LIBOR based loan requires a repayment guarantee to the primary Sponsor.