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.
April 23, 2015
Transaction Description: Gary E. Mozer, Katie H. Rodd, Michael Anderson and Kyle Howerton arranged $38,500,000 in 10 year on-book non-recourse acquisition financing from a national life insurance company on a 164-unit Class A multifamily property in Ventura County, Southern California. The subject is part of a masterplanned community with a complicated HOA structure. The newly constructed property was built in two phases and was in lease-up during the closing process. Sized to 70% of acquisition, the loan is priced at 185 basis points over the 10-year Treasury and locked at 3.90% at application execution, eliminating interest rate fluctuation during the closing process even though the property had not yet reached stabilized occupancy. Five years of Interest Only payments maximizes the Sponsor’s cash flow during the initial hold period but still provides the lender with acceptable balloon balance at the end of the term.
April 9, 2015
Transaction Description: Jonathan Lee arranged the ground-up construction financing for a 12 unit condominium project in the Koreatown (Harvard Heights) area of Los Angeles, California. The project will be a five-story structure, composed of one and two-bedroom units that will feature underground parking, premium fixtures, and open floor plans that range from 640 to 985 square feet. Located in a very walkable and transit-oriented area, this asset is well positioned to draw professional-level residents that want to live close to entertainment and employment centers. Sized to 75% of cost, the 18 month loan (with two six-month extension options) is priced at an all-in rate of 3.15%.