Rate: 5.03% (10 year swap +1.93%)
Term: 10 Years
Amortization: 2 years Interest Only then 30 years amortization after
Loan to Value: 72%
DSCR: 1.40X
Prepayment: Defeasance
Guarantee: Non-Recourse
Lender Fee: Par

Transaction Description:
George Smith Partners successfully arranged $6,500,000 in cash-out permanent refinance secured by a 104,974 SF, multi-tenant Research & Development facility in Bristol, Pennsylvania. The loan proceeds will be used by the Borrower to pay off the existing debt and to buyout a partner.

Challenges:
The Subject Property is fully occupied with short-term leases. The Major Tenant is one of the largest chemical companies in the world, which occupies 72% of the total building space. The Tenant has a lease term of less than three years, and their lease requires only a 6-months notice period. In addition, the Appraiser had a difficult time finding comparables because of the Research and Development special use of the Facility.

Solution:
GSP identified a CMBS lender willing to provide a 10-year loan structured with 15 months of major tenant cash flow sweep prior to lease expiration. GSP provided comparables that the Lender and Appraiser found acceptable. The appraised value was within the range to receive the full loan amount that the Borrower requested. Priced at 10-year SWAP + 1.92% for the 10-year term, the fixed loan sized to 72% of value, 2 years Interest Only, then 30 years amortization.

Rate: 6.90% Fixed
Term: 12 Months + 2 (6)-Month Extensions
Amortization: Interest Only
LTC: 64.5%
Guarantee: Non-Recourse

Transaction Description:

George Smith Partners secured $6,000,000 in non-recourse predevelopment financing for a 170-unit ground-up multifamily project in the Tarzana community of Los Angeles, CA. The site is a collection of five contiguous lots, parceled together by the Sponsor to create an opportunity for larger scale development in the area. This financing facility allowed the Sponsor to recuperate some of the invested equity to be used towards continued advancement of the predevelopment for the Project, including but not limited to design and construction drawings, entitlement costs and permits. The Sponsor is currently building another ground-up multifamily project nearby and is an active local investor and developer, owning several retail and mixed-use assets in the area.

GSP sourced a lender who offered a fixed-rate financing facility to lessen the burden of development costs on the Project, recapturing nearly 65% of invested dollars for a bridge through the pre-development phase; it will ultimately be taken out by the construction loan when the Project breaks ground. The identified capital group was already familiar with the site, and was able to offer a flexible and low-cost structure without a prepayment penalty. The application was an expeditious process; GSP was able to facilitate a closing less than three weeks from the date the term sheet was signed. The twelve month fixed rate note was priced at 6.90%, and was sized to 64.5% of cost basis.

Advisors

Evan Kinne Managing Director, GSP; CEO, AXCS Capital

Rate: Confidential
Term: Five years
LTV: 70%
DSCR: 1.20x (global)
Guarantee: Recourse
Lender Fee: 0.50%

Transaction Description:

George Smith Partners successfully arranged a $4,250,000 mini perm to refinance an existing bridge loan collateralized by a 2007 constructed, 25,000 square foot shadow anchored shopping center located in the Inland Empire. The prior loan, also sourced by GSP, enabled the Sponsor to restructure the ownership entity plus take advantage of a discounted payoff dating back to the last recession. The most significant challenge was attributed to rising interest rates that ultimately governed the final loan sizing. After evaluating the firm’s extensive lending relationships, GSP sourced a community lender who became comfortable with this location and tenant mix as well as the Sponsor’s financial strength, track record, and personal guarantee. The new loan has a flexible prepayment structure that is open to repayment at any time.