Rate: 5.90%
Term: 12 Months + One 3-Month Extension
Amortization: Interest Only
LTV:(Purchase Price): 60%
Guarantee: Non-Recourse
Lender Fee: 1%

George Smith Partners arranged $9,120,000 in non-recourse acquisition debt secured by a cold storage facility. The Property is situated in the Chinatown submarket of Downtown Los Angeles and benefits from being within the CASP (Community-Based Planning Effort) area. GSP targeted a capital provider comfortable with the single tenant nature of the property, and the ability to focus on the future value of the parcel. Sized to 60% of the $15.2MM total purchase price and fixed at 5.90% on an interest only basis, the non-resource facility has an initial term of 12 months followed by an optional 3-month extension. All prepayment penalties were waived, allowing the Sponsor the flexibility to refinance at a lower rate once construction financing is obtained.

Advisors

Evan Kinne Managing Director, GSP; CEO, AXCS Capital

Rate: 6.90% Fixed
Term: 12 Months
Amortization: Interest Only
Loan to Value: 60%
Prepayment: Open Full Term
Guarantee: Non-Recourse

GSP arranged the $7,250,000 ($328/Land SF, $1,375/Building SF) non-recourse first mortgage from a debt fund to refinance a maturing bridge loan on a 22,150 square foot land parcel located along a major thoroughfare in coastal Los Angeles. The Borrower recently entitled the land for a retail redevelopment and is now pre-leasing the to-be-constructed improvements. The loan repaid the existing debt, covered 100% of closing costs, and provides the borrower with an additional 12 months of loan term while it pre-leases the project and gains final site plan approval from the City. Even though the loan is non-recourse, the Lender did not require an appraisal or other third-party reports, nor did it require an interest or carry reserve although there is no in-place cash flow. Sized to 60% of value, the loan priced at 6.90% fixed for the 12-month loan duration.

Advisors

Nick Rogers Vice President

Rate: 4.18%
Term: 20 years
Amortization: 1 Year Interest Only followed by 30 year amortization
Prepayment: 5,4,3,2,1 then 1
LTV: 80%
DCR: 1.2x
Guarantee: Non-Recourse

George Smith Partners secured a $2,255,000 non-recourse acquisition loan for a 16-unit property in Los Angeles. A number of challenges were encountered in closing the transaction. First, the Sponsor was acquiring the property as part of a 1031 Exchange and did not want to put any additional equity into the deal so they required maximum proceeds; however, the property had 4 vacant units which reduced the in-place cash flow and quoted loan proceeds. Second, the Sponsor had to close within 40 days.

GSP was able to source a lender that provided a solution to both challenges. The Lender was able to quickly close the transaction with a bridge loan. The bridge loan provided sufficient proceeds to complete the purchase with the 1031 Exchange. Next, once the Sponsor controlled the property, they were able to lease up the vacant units. This increased cash flow at the property and met the underwriting criteria for a permanent financing. As a result, the Sponsor was able to refinance the bridge loan and lock in a low fixed rate. The Lender was able to lock the rate for the permanent loan while they were still closing the bridge loan.

Advisors

Matthew Kirisits Director