FINfacts™ XXIV – No. 97 | December 6, 2017

MARKET RATES
Prime Rate 4.25
1 Month LIBOR 1.40
6 Month LIBOR 1.71
5 Yr Swap 2.18
10 Yr Swap 2.35
5 Yr US Treasury 2.12
10 Yr US Treasury 2.33
30 Yr US Treasury 2.73

RECENT TRANSACTIONS
$60,000,000 Woodland Hills Construction Loan for 241-Units + 34,000 sf Retail

Rate: L+250
Term: 36 month term + Two, 12-month extensions
LTC: 70%
LTV: 60%
Guarantee: Recourse

George Smith Partners arranged $60,000,000 of ground-up construction debt for a mixed-use, luxury multifamily development to build a 241-unit Woodland Hills apartment project that will include 34,139 square feet of retail. GSP sourced a lender comfortable with the Sponsor’s lack of experience, exposure issues and ability to execute on the development plan. This property is located within the Warner Center 2035 Plan, a development blueprint for Warner Center that emphasizes mixed-use and transit-oriented development, walkability, and sustainability. Sized to 70% of cost, the three year term has two – 12 month options that float at 250 basis points over LIBOR.

Advisors

Steve Bram
Managing Director & Principal / GSP Co-Founder
David R. Pascale, Jr.
Senior Vice President

$13,850,000 Ground-Up 29 Unit Los Angeles Rental to 75% of Cost

Rate: 30 day LIBOR + 315
Term: 24 months plus two 6-month extensions
LTC: 75%
LTV: 70%
Lender Fee: 0.60%
Guarantee: Recourse
Prepayment: None

George Smith Partners secured the $13,850,000 ground-up development loan for a 29-unit multifamily rental property in the Pico-Robertson neighborhood of Los Angeles. GSP targeted a capital provider who was not only knowledgeable about the location and marketplace, but also comfortable with the Sponsor’s experience and ability to execute the construction project. GSP surveyed the project’s risks upfront with the capital provider and structured objective criteria that satisfied both the Sponsor and Lender. Sized to 75% of total costs, the 24 month recourse loan allows for two 6 month options and is priced at 30-day Libor + 3.15%.

Advisors

Matthew Kirisits
Director

West Los Angeles SFR Acquisition and Construction/Reposition Financing

Rate: Prime + 1.00%
Term: 18 Months
LTC: 70%
Lender Fees: 0.75%
Guaranty: Recourse

George Smith Partners placed the 70% loan-to-cost acquisition and construction financing for a speculative single family residence in West Los Angeles. The sponsor’s plan was to acquire an outdated single family property, and re-develop a 4,200 square foot luxury home. Although this was only the Sponsor’s second speculative single family residence, George Smith Partners was able to emphasize the project’s location and basis to ultimately achieve lender comfort with the requested leverage. Sized to 70% of total cost and 60% of as-completed value, the interest only loan will float at 1.00% over the WSJ Prime for 18 months.


SPEAKERS CORNER

Please join Bryan Shaffer, Principal/Director of George Smith Partners, and other top-level industry leaders tomorrow at the RENTV San Fernando Valley/Tri-Cities State of the Market Conference at the Courtyard by Marriott Sherman Oaks. Mr. Shaffer will participate on the Office panel at 8:00 am.  Register here.

Please join Gary Tenzer, Principal/Co-Founder at George Smith Partners on December 13, 2017 at Connect Westside Los Angeles at the Luxe Sunset Boulevard. Mr. Tenzer will moderate the “2018 Financial Outlook” at 2:00 pm. The discussion will be focused on the future of CRE investment and financing, what’s succeeding and what’s changing? Register here and use the coupon code, “GSP” for 20% off the ticket price.


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HOT MONEY
Life Company with Allocation for Construction, Bridge, and Permanent Loans for Unique Assets

 

GSP is originating debt with a national life company for transactions from $5,000,000 to $125,000,000. Fixed or floating non-recourse bridge loans start at $5,000,000 and above with pricing starting at LIBOR plus 4.50% with leverage up to 80% LTV. Properties with below break-even debt coverage will be reviewed on a case by case basis. This balance sheet lender will finance non-recourse construction loans $50,000,000 and above to 65% LTC starting at LIBOR plus 4.50%. Typical terms for bridge and construction are interest only for 3 years fixed with leverage up to 70% LTV. Permanent loans are 5 to 20 years fixed. The capital provider will fund asset classes that other life companies typically shy away from.

More Hot Money ›

If you have an inquiry regarding George Smith Partners’ commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer (310) 867-2995 or TAugust@GSPartners.com


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