Rate: 8.0% at closing (1 Month LIBOR + 6.1%)
Term: 12 Months
Amortization: Interest Only
LTC: 70% of lender approved costs
Guaranty: Completion Guaranty; Capped Repayment Guaranty
Lender Fee: 1.0%; 0.25% rebate to sponsor if loan paid off in less than 9 months

GSP successfully placed $13,700,000 in first mortgage financing for completion of construction on an approximately 10,000 square foot luxury single-family residence in Beverly Hills. The 12-month initial term has two three-month extension options with a 0.375% fee payable per extension, and Interest Only payments during the life of the loan. If the loan is paid off in less than nine months, the sponsor benefits from a 0.25% rebate on the 1.0% lender loan origination fee.

The loan funds up to 70% of lender-approved costs and the interest rate floats at 1-Month LIBOR plus 6.1% (8.0% coupon at closing). The cash neutral transaction allowed the sponsor to refinance out of a prior construction loan and release $1,500,000 from a pledge account with the prior lender in order to free up equity.

The offshore sponsor provided a completion guaranty and a repayment guaranty capped at $5,000,000.

Advisors

Nick Rogers Vice President

Rate: 10 Year Swap + 2.00% (4.98% coupon)
Term: 10 Years Fixed
Amortization: 30 years
LTV: 70%
DCR: 1.25x
Lender Fee: Par
Guaranty: Non-Recourse
Prepayment Penalty: Defeasance

George Smith Partners successfully structured a $10,000,000 non-recourse, cash-out permanent loan secured by a 44,250 medical office building in a tertiary northern Virginia market outside of Washington D.C. In the current rising interest rate environment, the Sponsor’s goal was to lock-in a long term, low interest rate loan while freeing cash for other investment projects. Although the transaction was complicated by the lack of available market information, GSP sourced the loan with an experienced, sophisticated investment bank who not only became comfortable with the market, but also understood the asset quality together with the Sponsor’s operating experience and financial strength. GSP worked together with the lender to guide the first-time CMBS borrower through the comprehensive transaction process. Priced at 10-Year Swaps + 2.00% (4.98% coupon), the 10-year fixed rate loan sized to 70% of value with a 30-year amortization schedule, and a 1.25x debt coverage ratio.

Rate: 4.75%
Term: 10 year fixed rate loan
Amortization: 25 years
Loan to Value: 64% (as-is)
DSCR: 1.25X (Based on Actual Income)
Prepayment: No prepayment penalty
Guaranty: Recourse
Lender Fee: Par
TI/LC Reserves: No upfront TI/LC holdbacks and on-going reserves
Free rate lock at signing of LOI for 5 Months

George Smith Partners successfully arranged $1,750,000 in cash-out permanent refinance secured by a 107,965 SF, 9-tenant shopping center in Rialto, California. The shopping center is currently 100% occupied, anchored by Superior Grocers, CVS and McDonald’s. The purpose of the cash-out refinance is to pay-off an existing loan, and use the remaining balance for future investment.

The subject property is encumbered by a ground lease with 12 years of the term remaining. GSP identified a capital provider who was comfortable with the ground lease due to the financial strength and track record of the Borrower. GSP facilitated communications between Borrower and Lender to clarify complicated subleases between tenants, and assessed the property’s cash flow risks upfront. The loan is fixed for 10 years at 4.75%, 25 year amortization. No prepayment penalty.