Hot Money

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    Construction and Bridge Financing for Large Projects In Major Markets

    Hot Money

    June 21, 2017

    GSP is working with an opportunity fund to arrange senior and mezzanine debt for pre-development, construction, and heavy bridge deals for large transactions throughout the top 20 MSAs in the U.S.  The unique feature of this lender is that they fund the whole loan and do not syndicate the construction loan which has become increasingly common for large construction deals.  Mezzanine Loans from $20,000,000 and up will be considered as well as whole construction loans $75,000,000 and up.  A representative loan structure would be class A multifamily construction at 75% Loan to Cost at LIBOR plus 5.50%.

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    High Leverage Non-Recourse Construction and Bridge Financing

    Hot Money

    June 14, 2017

    GSP is originating non-recourse, construction, bridge and quick-close financing opportunities from $5,000,000 to $25,000,000 to 85% LTC and 75% LTV.  Acquisition and pre-development, transitional use, and adaptive reuse will also be considered.  Pricing starts at LIBOR plus 800 with current pay and accrual structures.  Loans can close in as little as two weeks.  All product types including entitled land in coastal or infill areas will be considered.  The lender is active in major markets west of Denver, CO.

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    Participating Loans to 90% LTC for Transaction $20,000,000 and Above

    Hot Money

    June 7, 2017

    GSP has sourced a capital provider that can provide non-recourse loans to 90% of cost including interest reserve, tenant improvement, leasing commission, and capital expenditures.  The loan will feature a current pay of 6.50% to 7.50% and an equity participation at the end of the five-year term.  The minimum loan size will be $20,000,000 and some interest only is available.

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    Creative Financing Solutions to $100,000,000 for Construction and Bridge Loans

    Hot Money

    May 31, 2017

    GSP is working with a credit company providing high leverage, creative financing solutions for transactions typically unable to be financed by banks.  Loans will be limited to 70% LTV, but can be over 100% of cost for the right transaction.  Pricing starts at Libor plus 10% for terms up to 5 years.  Construction, bridge, and land loans along with other opportunities that require structure will be considered.  Loan sizes range from $10,000,000 to $100,000,000 for transactions in markets with strong fundamentals.

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    Private Lender Funding Quickly With Single Digit Interest Rates

    Hot Money

    May 24, 2017

    GSP is working with a private lender funding non-recourse loans to 75% LTC for transactions between $1,000,000 and $5,000,000.  Rates are between 8% and 9% with approximately 2% origination vs. 10% and up for competitors in this space. Properties with zero cash flow are okay.  The lender touts leverage and speed of execution to allow real estate companies to act quickly on business plans.

     

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    Balance Sheet Lender Offers Non-Recourse Permanent Loans With Early Spread Lock

    Hot Money

    May 17, 2017

    GSP has sourced a balance sheet lender offering non-recourse loans from $7,500,000 to $25,000,000 fixed for 7 years with no lender origination fee.  Sized to 75% LTV, the lender will lock spread for 45 days early in the application process.  Multifamily, Retail, Office, Industrial, Self-Storage, Manufactured Housing, and Mixed-Use buildings in major markets and secondary markets will be considered.  The lender services the loan and does not require rating agency or B-piece buyer approval to fund which raises certainty of execution.

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    Aggressive Fixed and Floating Rate Financing for Stabilized Assets

    Hot Money

    May 10, 2017

    George Smith Partners’ national correspondent lender is actively providing non-recourse and limited recourse financing for loans $2,000,000 to $30,000,000 on stabilized multifamily, industrial, office, and retail with low rollover risk.  Floating rate loans can be priced starting LIBOR plus 1.95%.  Fixed rate loans start at 3.50%. The lender fee is Par to GSP clients. Sized to 70% LTV, these loans do not require reserves other than impounds for taxes and insurance and have flexible prepayment options.  Forward commitments are offered up to 12 months at a nominal fee of 3-5 basis points per month after 60 days free rate lock at application.

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    Joint Venture Equity for Top 20 Markets

    Hot Money

    May 3, 2017

    George Smith Partners has established a relationship with an equity investor group that is providing joint venture equity with an emphasis on home building and residential land development in the top 20 M.S.A.s throughout the U.S.  The investor group is managed by veterans that have been in the land development and home building business for decades.  They seek established private developers and builders who have strong teams and experience in their local markets and need the capital to grow.  Multifamily development and other asset classes will also be considered in these top 20 markets.  Depending on the duration and risk profile of the deals, the fund targets returns with a minimum 20% IRR and a 1.5x equity multiple and a minimum investment of $5,000,000 per deal with a goal of investing more than $25,000,000 per partner.

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    Subordinate Debt and Preferred Equity Investments Starting at $3,000,000

    Hot Money

    April 26, 2017

    GSP is working with a capital provider who is providing mezzanine, B-notes, and preferred equity investments ranging from $3,000,000 to $25,000,000, provided the subordinate debt is a minimum 15% of the debt stack.  Asset types will include: Multi-Family, Manufactured Housing, Office (CBD and suburban), Retail (anchored and unanchored), Industrial, Self-Storage, and Hospitality (primary markets with minimum 5 years operating history).  Pricing will be interest only at 9-11% for debt and 10%-13% for preferred equity.  Debt will be leverage to 80% LTV and 1.10 DSCR and preferred equity will be sized to 85% LTV and 1.00 DSCR.

     

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    Construction and Bridge Financing to 85% LTC on Loans to $25,000,000

    Hot Money

    April 19, 2017

    GSP is originating loans for a nimble construction and bridge lender with a full discretionary balance sheet transacting on loans between $5,000,000 and $25,000,000 on all asset classes. The platform was built to move quickly and be very flexible on structure. Loans can be closed in as little as three weeks. Current pay and accrual structure can be arranged for properties with little to no cash flow going in. They can also recognize imputed equity and work with experienced sponsors that might have been unlucky in the recession. Pricing starts at Libor plus 8.00% with 1.00% origination and 1% exit fee. Leverage can go up to 85% LTC and 75% LTC. The lender funds transactions in the Western United States.

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    Multifamily Bridge Loans at LIBOR + 2.50%

    Hot Money

    April 12, 2017

    GSP has identified a national lender specializing in light bridge loans $5,000,000 and up on multifamily assets up for to 24 months.  Loans are sized to as low as 6% debt yield and up to 75% of cost including 100% of any renovation costs. No interest is charged on future funding until funds are drawn.  The lender likes to see properties that need no more than $15,000 per unit to rehabilitate.  Priced at LIBOR plus 2.50% and up, loans can close in 45 to 60 days.  The bridge loans have top level recourse where the loan are sized to a permanent loan on in place income and recourse is only the differential between the higher bridge loan amount and the current permanent debt the property underwrites to.

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    Fast, Reliable, Non-Recourse Bridge Loans Nationwide

    Hot Money

    April 5, 2017

    George Smith Partners is originating non-recourse loans up from $5,000,000 to $40,000,000 for a national specialty bridge lender.  Leverage ranges from 75% to 85% LTC plus 100% of good news dollars and interest reserve for deals below break-even debt coverage at close. Interest is not charged on funds until drawn and there is typically no origination fee, but there is an exit fee which demonstrates the lender’s commitment fund as many dollars toward the reposition as possible vs. discounting proceeds with hold backs.  Typically terms are three years with (2) one year extensions.  Yield Maintenance burns off after 12 months after the loan. Rates start at LIBOR+5.00% and loans can close in as fast as 30 days.   With a 16 year track record, our capital provider provides certainty of execution.