Rate: 3.55%
Term: 7 Years
Amortization: 30 Years
Loan to Value: 70%
Prepayment: Step-Down
Non-Recourse: Carve-Outs limited to an LLC

Transaction Description: George Smith Partners arranged the $29,000,000 non-recourse refinancing of a five property, 230-unit, Class B multi-family portfolio located in Northern California. Loan proceeds beyond the current capital stack are ear-marked for capital improvements and to acquire additional commercial real estate assets. A complex ownership structure holding each asset in a separate Single Purpose Entity and a Managing Member LLC signing carve-outs provided no warm body guarantee. One asset in the portfolio is situated in a high-risk earthquake zone; necessitating a possible requirement for earthquake insurance. GSP identified a California portfolio lender who understands earthquake risk assessments and is comfortable with the multiple asset location to mitigate risk. Sized to 70% of value, the non-recourse loan is fixed at 3.55% for seven years, amortized over 30 years.

Advisors

Gary M. Tenzer Managing Director & Principal / GSP Co-Founder

Rate: 4.71%, Fixed
Term: 10 years
Amortization: Five Years Interest Only
LTV: 65%
Prepayment: Defeasance
Non-Recourse
Lender Fee: None

Transaction Description: George Smith Partners successfully placed the $6,800,000 10-year fixed-rate, cash-out refinance of an Inland Empire multi-tenant retail property anchored by a national office supply retailer and a national specialty music store. 85% of property income is derived from two tenants, who do not report sales, and whose leases expire in 2020: during the 10 year term of the loan. GSP identified a lender comfortable with the concentrated rollover risk by mitigating it with a springing cash flow sweep structure as opposed to collecting upfront reserves. This structure, in addition to five years of interest only payments, maximized cash flow for the Sponsor. The non-recourse loan has a 4.71% fixed coupon for the 10-year term.

Rate: WSJ Prime + 0.75%
Floor Rate: 4.75%
Term: 18 Months with One – 6 Month Extension
Amortization: Interest Only
LTC: 65%
Recourse
Lender Fee: 0.75%

Transaction Description: George Smith Partners successfully placed the $3,496,000 senior construction loan for the ground-up development of 22 residential rental units in the San Fernando Valley. The subject will offer a mix of one and two bedroom units; 18 market rate apartments and 4 affordable housing units. Our Sponsor initiated site preparation prior to recording the construction loan, resulting in broken lien priority and preventing the title insurance company from binding the policy. GSP successfully worked with the Stewart Title Company to obtain an indemnity agreement allowing for the construction loan to be placed on the property, concurrent with the issuance of the title policy. Sized to 65% of the project cost, this recourse loan is priced at Prime + 0.75% with a floor rate of 4.75%.

Rate: 4.25% fixed for 5 years
Amortization: 25 years
LTC: 65%
Lender Fee: 0.50%
Prepayment: 3%, 2%, 1%, open, open
Recourse

Transaction Description: Ameet Chagan arranged an $850,000 acquisition loan for a first-time commercial real estate purchaser of a 10-unit multifamily building. Although our Sponsor owns and manages 2 & 4 plexes, this 10-unit acquisition is his first venture away from the conforming residential market. The subject property was distressed with minimal operating history available from the seller and proforma cash flow was challenging to quantify for the Class C asset. GSP identified a regional portfolio lender with an appetite for multifamily who was willing to rely on the buyer’s background in owning 2-4 unit residential buildings in this market. Fixed for five years at 4.25%, the recourse loan allows for a step-down prepayment from 3% with the last two years open to prepayment without penalty.