Rate: Bridge: Prime + 0.50% w/4.0% Floor. Mini-Perm: Market Rate
Term: Bridge: 2 Years. Mini-Perm: 5 Years
Amortization: 1 year IO, followed by 30 year amortization
LTC: 70%
Lender Fee: .375%
Recourse: Bridge: Top 25%. Mini-Perm: Carve-Outs Only
Prepayment: None

Transaction Description: George Smith Partners secured the $12,477,000 acquisition and reposition loan for a 189-unit apartment building in Southern California. The mixed use asset also contains 1,700 square feet of ground floor retail. A 1920s vintage construction, an ornate lobby and large central courtyard accented the 5 story reinforced brick building. Positioned in a current low income neighborhood, this asset is adjacent to gentrified communities with very expensive rents. Our sponsor will commence on a capital improvement project to improve the unit/property quality and lease units to tenants at rents significantly lower than neighboring areas, but higher than current levels. Sized to a 5.15% going-in debt yield, GSP identified a capital provider who underwrote to future income and offered limited top-end recourse based on the property’s value and cash flow post renovations. The two year acquisition and bridge loan allows for a five year extension that becomes non-recourse beyond carve-outs upon execution. There is no interest reserve requirement during the reposition period and there is no prepayment penalty. Renovation proceeds are deposited into a checking account that is completely controlled by the Sponsor; there are no draw requests.

Rate: L + 5.50% with 45 basis point LIBOR floor
Term: Two-year initial term plus a one-year extension option
Amortization: Interest only
LTC: 85%
Prepayment: 12-month lockout
Guaranty: Non-Recourse
Lender Fee: 1%

Transaction Description: George Smith Partners successfully placed $23,425,000 in non-recourse bridge debt to acquire an 85,000 square foot vacant freestanding retail building, construct two single-tenant outparcel pads, and demise the existing big box improvements into a multi-tenant property anchored by a grocer and national discount retailer. Loan funding was contingent on signed leases for the grocer and junior anchor. These two tenants will contribute 54% of proforma income in the aggregate. Approximately $12,700,000 of loan proceeds were held back at closing to fund a) future hard and soft construction costs including a developer fee and b) an interest reserve covering debt service shortfalls plus carry costs. Interest is not paid on the $12,700,000 until drawn. Priced at LIBOR + 550, the two year term loan was sized to 85% of total project cost.

Advisors

Nick Rogers Vice President

Rate: 8.60%
Term: Six Months
Amortization: Interest Only
Recourse
Lender Fee: 1%

Transaction Description: George Smith Partners secured an acquisition bridge loan for a vacant office building in Long Beach, California. Application to funding occurred in four business days. Our Sponsor’s business plan is to convert the vacant office building into a 6-unit multifamily rental. Permits to convert were expected to be in hand by the expiration of the escrow period but had not yet been secured, precluding the institutional lender from funding the acquisition. A quick-close loan was structured to close on the purchase and refinance once permits are issued. Fixed at 8.60% for 6 months, the loan was sized to 60% to acquisition price and was funded within four business days on the escrow’s due date. There is no prepayment penalty.