Rate: 4.70% Fixed for 10 Years
Term: 10 Years
Amortization: 30 Years
LTV: 70%
DCR: 1.35
Prepayment: Yield Maintenance
Guarantee: Non-Recourse

George Smith Partners secured permanent forward commitment financing for a Walmart Neighborhood Market-anchored retail center in Jacksonville, Florida. The 71,000 square foot property was 98% leased at closing. The Walmart Market makes up 57% of the square footage and is on a new 20-year ground lease followed by sixteen, 5-year options. The Tenant built their own store after Sponsor delivered the pad, and opened the store just weeks prior to funding, which the ender required in order to close the loan. GSP sourced a ender that provided a forward commitment. The Lender locked the interest rate in mid-April for a July funding. The Sponsor was able to lock in a rate in advance of a run up in Treasuries. Other tenants include multiple restaurants (both local and chains), hair salon, nail salon, tax service, etc. — a classic “daily needs” retail tenant lineup. The property, which was built in 1990, recently underwent upgrades to the building façade, roofs, and parking lot; it looks like a brand new center. The $8,100,000 loan was sized to 70% of value and has a fixed interest rate of 4.70% for 10 years. It amortizes over a 30-year period, has a yield maintenance prepayment penalty, and is non-recourse.

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Advisors

Steve Bram Managing Director & Principal / GSP Co-Founder

David R. Pascale, Jr. Senior Vice President

Rate: 4.10%
Term: 30 years
Amortization: 30 years
LTV: 55%
DCR: 1.15x
Prepayment Penalty: 1.75, 1.75, 1.75, 1, 1
Guarantee: Recourse
Lender Fee: 0%

George Smith Partners successfully arranged the refinance of a 30-unit multifamily building located in the Koreatown neighborhood of Los Angeles. GSP worked with a local bank who had a strong appetite for multifamily lending and ultimately structured a loan in which the borrower pulled out $2,300,000 of cash. Due to the incredible location of the property, GSP was able to work with the lender to use a 1.15x DCR instead of a 1.20x DCR. The recourse loan has a fixed rate of 4.10% and refinanced a prior agency loan. A unique feature of this loan is the 30-year term with 30-year amortization. Following the first 5 years of the loan, the Borrower will have the ability to extend the loan at a fixed spread over the 5-year Treasury every 5 years until the 30-year term has ended and the loan is fully paid off. The safety feature always guarantees the Borrower a takeout loan. Additionally, after the first 5-year term has ended, there is no prepayment penalty. GSP also worked with the Lender to remove any lender fees.

Rate: 9.5% Fixed
LTV: 80% of Purchase / 65% of Stabilized Value
Term: 12 Months
Amortization: Interest-Only
Guarantee: Recourse
Prepayment Penalty: Three Months
Lender Fee: None

George Smith Partners arranged a quick close acquisition bridge loan for a partially vacant 4-plex in South Los Angeles adjacent to USC and Expo Park. The Sponsor approached GSP with an extremely tight closing time frame of 10 days and a property that had significant vacancy and deferred maintenance. The Sponsor valued certainty of execution above all else, so he could close on the property in short order. GSP identified a non-bank private investor willing to make the loan with no origination free. Sized to 80% of purchase with no holdback requirement for interest reserve or capital expenditures, the loan carries a 12-month term, interest-only payments at a 9.5% rate and a 3-month prepayment penalty.