Rate: L+3.50% w/4.25% Floor
Term: 3 years plus two 1-year extensions
Amortization: 25-years
LTV: 65%
Prepayment: Open
Non-Recourse
Lender Fee: 0.50%

Transaction Description: George Smith Partners successfully structured the cash-out non-recourse refinance of an 83% leased multi-tenant industrial business park. The Sponsor originally acquired the non-performing asset in 2014 and successfully executed their reposition plan; increasing physical occupancy and stabilizing cash flow. With the continued leasing velocity, the Borrower requested the opportunity to continue to capitalize on the remaining upside. This new financing structure provided an immediate return of equity while creating a floating rate debt stack with full flexibility and a limited reserve for tenant improvements and leasing commissions. Floating at LIBOR+3.50%, the three year term carries a 4.25% floor. There are two (2) one-year extensions, with no exit fee, and open to prepayment any time at par.

Advisors

Nick Rogers Vice President

Rate: 3.59%
Term: 5 Years
Amortization: One Year IO – 30 Years Thereafter
LTV: 70%
Non-Recourse
Lender Fee: PAR
DCR: 1.25x

Transaction Description: George Smith Partners successfully placed the refinance of a 28 unit multifamily property located in the Silverlake area of Los Angeles, half a mile from Sunset Junction Metroline. Constructed in 1928, the subject was acquired four years ago with significant deferred maintenance and underperforming rents. Our Sponsor embarked on an extensive phased renovation that increased his initial capitalization by an additional 50%. The Sponsor re-leased the Property to market rents, creating substantial value. Sized to 70% of current value, the five year loan is fixed 3.59% with one year of interest only. This financing allowed a 100% return of equity in addition to a small return on equity to the Sponsor, while they retain a strong cash-flowing asset.

Rate: WSJ Prime + 0.50%, Floored at 4.50%
Term: 2 Years
Interest Only
LTC: 80%
Prepayment Penalty: None

Transaction Description: George Smith Partners sourced the acquisition bridge debt for the purchase and the rehabilitation of a 20 unit multifamily property near Dodger Stadium, in Los Angeles. Sized to 80% of the total capitalization, the loan provided for an initial funding of $1,848,000 with the remaining $132,000 reserved for capital improvements. At the time of funding, the property cash flowed to a 0.7 debt coverage requiring the need for an interest reserve although one was not funded. The capital provider was comfortable with our Sponsor’s business plan and prior track record with similar products and agreed to allow the loan shortfall to be fed monthly out of pocket. Floating at Prime + 0.50% with a 4.50% floor, the 2 year loan is Interest Only. There is no prepayment penalty.