Rate: 3.39% Fixed for 10 Years
Term: 13 Years
Amortization: 30 Years
LTV: 53%
Non-Recourse
Lender Fee: Par
Prepayment Penalty: Yield Maintenance

George Smith Partners placed the cash-out refinance of an ethnic grocery & drug anchored retail center located in Southern California. Initially apped for a seven-year term; movement in the capital markets netted an all-in coupon substantially lower for a 10 year fixed period than the applied-for seven year term. Our portfolio capital provider allowed for a free 60 day early rate lock that enabled our Sponsor to lock at the bottom of the treasury market post-Brexit vote. They also extended the loan term an additional three years (floating) so that anchor lease termination does not coincide with the loan termination. There are no lender held tenant improvement/lease commission or on-going capital repair reserves. Fixed at 3.39% for 10 years, the 13 year term non-recourse loan amortizes over 30 years.

Rate: Prime + 0.50% with a floor of 4.25%
Term: 5 years
Amortization: 2 years IO; 30 years thereafter
Prepayment: None
LTC: 70%
Lender Fee: 0.5%

George Smith Partners secured the $4,504,500 acquisition bridge loan for the purchase of a mixed use property containing 37 residential units, 2 retail units, an attached parking lot, and a rooftop billboard. Although located within two miles of several extremely strong rental markets, the subject is positioned in an area dominated by low income families. City rent control has many tenants paying well below market rent, thus, at 70% of purchase price, the debt coverage was less than 1.0.

To address the cash-flow shortfall, our Sponsor’s business plan is to quickly re-lease the parking lot and billboard at market rates, while simultaneously renovating and re-tenanting residential units over a three-year period. Based on that plan, our portfolio capital provider advanced 70% of the purchase price, with only a small holdback to be released once the property achieves a 1.25 DCR. Capital expenditure & renovation funds are entirely controlled by the Sponsor in a standard checking account. The loan was committed and ready to fund within 30 days of the executed application. Floating at Prime plus 0.5% floored at 4.25%, the five year loan allows for two years of interest only before rolling into a 30 year amortization schedule.

Rate: 5 Years Fixed at 4.75%
Term: 30 Years
Amortization: 30 Years
Non-Recourse: No Carve-Outs

George Smith Partners placed the no-cash-out refinance of a 12 single family rental portfolio; coined as horizontal multifamily residences. The non-contiguous properties are held by a 501c3 and are deed restricted to be leased as exclusively as affordable units, charging well below market lease rates. Our Sponsor’s objectives were to significantly reduce their interest rate and extend their current loan balloon date. Deed restrictions also precluded the return of any equity. There was no warm-body available to guarantee including carve-outs. This is a completely non-recourse loan. Fixed for five years at 4.75%, the loan will recast at prevailing rates for a second five year term at the five year CMT + 3.50% and float for the remaining 20 year term. There is no balloon for this 30 year self-liquidating loan.