GSP is originating debt with a direct balance sheet lender that services their own loans for transactions from $3,000,000 to $60,000,000.  Institutional Loans start at $10,000,000 with pricing starting at LIBOR plus 375 with leverage up to 80-85% of “as-is” value or 70-75% of “as-stabilized” value.  Short-term bridge loans start at $3,000,000 and offer fast closing and structured solutions with pricing starting at LIBOR plus 675 with leverage up to 70%.  Medium-term whole loans start at $7,500,000 at LIBOR plus 400 with leverage up to 75% “as-stabilized” or 80% LTC of total project costs.  The lender is open to transactions in secondary markets and financing owner operated buildings.

Last Friday, the 10 year T yield dropped to 2.01% on a huge “risk off” trade.  Today the 10 year T closed at 2.19%.  Why?  Investor fears have subsided due to: (1) Hurricane Irma damage (while very serious) was less than anticipated as the storm’s path avoided the heart of Miami-Dade and it weakened as it moved inland; (2) North Korea did not provoke hostilities (no missile launches, etc.) on it’s anniversary over the weekend; (3) Weekend chatter in Washington in the wake of the debt ceiling deal turned to further cooperation on tax reform.  This week’s economic reports included an all-time high in median household income (but disparities are increasing) and an increase in PPI (but less than expected and the increase was partially driven by a spike in energy costs due to Hurricane Harvey’s effect on the sector).  On the Fed front, it looks like there is only one more opportunity to raise rates this year and that will come in the December meeting.  There are only two meetings remaining that will be accompanied by a press conference by Fed Chair Yellen (September and December).  Next weeks’ meeting is expected to feature an unprecedented announcement whose effects cannot be easily predicted: the beginning of the Fed’s balance sheet reduction.  The press conference and it’s aftermath will be closely watched.  The reduction will increase the supply of Treasuries in the private sector.  The move has been telegraphed since early this year in the hopes of avoiding a 2013 style “Taper tantrum” that led to major volatility in treasuries. Market reaction could influence the Fed’s rate decision in December.  As of now, the futures market is slightly weighted toward no change in rates, but it is very close.  Stay tuned. By David R. Pascale, Jr. , Senior Vice President at George Smith Partners

George Smith Partners Appoints Two New VPs; New Positions Bolster Firm’s Growth & Expansion

George Smith Partners has announced two new additions to its team, Allison Weiss as Vice President/Director of Platform Development and Dana Light as the Vice President of Research/Marketing. Both Weiss and Light will work to increase the velocity of the firm’s ongoing growth and expansion, according to Principals and Co-Managing Directors Jonathan Lee and Shahin Yazdi. In her newly created role, Weiss will be responsible for recruitment and hiring on a national basis. In her new position, Light will focus on researching responsible lenders and lending programs for George Smith Partners. This work will support the firm in upholding its exemplary reputation, which was established by George Smith when he founded the company 25 years ago.