Hot Money

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    Mezzanine Financing for Affordable Housing

    Hot Money

    March 13, 2019

    George Smith Partners identified a private commercial real estate finance company that provides non-recourse mezzanine financing for the acquisition, renovation and development of multifamily properties (with at least 20% of the units classified as affordable) located in the Western U.S. The financing is structured as a tax-exempt private activity housing bonds or 501(c)(3) bond. They can be used on mixed use 80/20 projects, for non-profit corporations, can be subordinate to HUD and Rural Development Loans and can be repaid from the sale of tax credits. With the ability to advance 90% of mezzanine loan programs range from $5,000,000 to $15,000,00. Interest-Only pricing for Acquisition / Rehab ranges from 8% – 10%, compounded monthly and Development ranges from 10% – 12%, compounded monthly.

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    Homebuilding & Residential Development Equity

    Hot Money

    March 6, 2019

    GSP is working with an established equity source with a nationwide platform offering joint venture equity, preferred equity and mezzanine financing. Product types include for-sale homebuilding (single family, townhouses, condos), land development, build-to-rent and other residential related investments. The capital group is currently seeking opportunities with experienced builders and developers. Target investments range from $8M per deal and $25M programmatic joint ventures.

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    Fixed Rate Capital for Land Loans

    Hot Money

    February 27, 2019

    GSP is working with a capital provider that will provide recourse fixed rate financing to 75% of cost (90% + on build to suits) including, acquisition, improvements, development, pre-development, discounted payoffs, bankruptcy exit, purchase of notes and cash-out. Fixed rate pricing starts at 9% for terms up to 1 year with extension options up to 3 years for Multifamily, Office, Industrial, Retail, Special-Use, Entitled Land and Construction. Loan sizes range from $1,000,000 to $10,000,000 for transactions located in California, Arizona, Nevada, New Mexico and Washington.

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    5.5% Fixed Rate Bridge Starting at $3mm to 80% LTC Funding Below Break-Even Coverage

    Hot Money

    February 20, 2019

    George Smith Partners is placing non-recourse financing for debt sponsors nationwide on all major property types. With transactions sized from $3 million to $20 million for fixed rate bridge w/sub 1.0 cash flow, pricing starts at 5.50% for terms up to five years with flexible yield maintenance and up to 80% of cost. Pricing for floating rate transactions start at LIBOR + 325. Transactions go up to $50 million with terms up to five years and up to 85% of cost.

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    Nationwide Non-Recourse Bridge Financing with No Prepayment Penalties

    Hot Money

    February 13, 2019

    George Smith Partners is placing non-recourse financing for reposition transactions from $3,000,000 to $15,000,000 on light to heavy value-added properties nationwide. This institutional lender will finance Industrial, Retail, Office, Multifamily, Self-Storage, Student Housing and Medical Office. Lender will fund up to 80% of purchase and 100% of good news dollars with terms up to three years for transitional assets with no prepayment penalties and no LIBOR cap required.

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    Non-Recourse Bridge Financing 85% of Cost

    Hot Money

    February 6, 2019

    George Smith Partners is placing non-recourse bridge debt, mezzanine debt, and preferred equity to 85% of cost through a national portfolio lender funding transactions from $2,000,000 to $15,000,000. The Capital Provider offers flexible loan structures with interest only terms between 1 to 5 years and extension options. Floating rate pricing starts from LIBOR + 325. Lender has a strong appetite for Multifamily, Office, Industrial, Retail and Hospitality properties located in primary, secondary and tertiary markets.

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    National Specialty Bridge & Ground-Up Construction Lender to 80% of Capitalization

    Hot Money

    January 30, 2019

    George Smith Partners is working with a national provider funding fixed and floating rate bridge loans from $7,000,000 to $65,000,000 and pricing between 600-900 over LIBOR on a non-recourse basis. With terms from 12-36 months, this lender has the ability to advance 80% of purchase price for new acquisitions, renovations, restructuring, partnership buyouts, construction and special situations. Asset types include Multifamily, Office, Retail, Industrial, Warehouse, Mixed Use, Manufactured Housing, Self-Storage, Senior Housing, Student Housing, Medical Office and Commercial and Residential Land.

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    Co-GP Equity Provider Offering Financing for JV’s During Predevelopment

    Hot Money

    January 23, 2019

    George Smith Partners is working with a Co-GP equity provider for multifamily, condominium, office, hospitality, mixed-use, retail, student housing and industrial sectors. The capital provider will enter into joint ventures during pre-development periods and will take entitlement risk. They can be used to provide equity for ground-up development, build-to-core, asset repositioning, distressed construction projects and non-performing construction loans. Looking for value-add and opportunistic ground-up opportunities in top 25 markets nationwide. Target equity investments between $15-$50+ million for total capitalizations north of $100 million ranging from 50% – 90% of the required GP equity. A construction completion guarantee will be provided where their GC is project managing.

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    Construction Financing 80% LTC

    Hot Money

    January 15, 2019

    George Smith Partners identified a regional capital provider lending on transactions up to $16,500,000 on a recourse basis. With the ability to advance up to 80% of purchase price on ground-up construction and luxury SFR’s, Condos and Multifamily, pricing is 1.25-1.50 over Prime for a 24 month term. Other offerings include earn-outs and value-adds for commercial loans, SRO’s, and TIC’s, as well as cookie-cutter industrial, office and industrial.

    Tenancy-in-Common (TIC) owners of a multi-unit property have exclusive usage rights to a particular area of the property. They own percentages in an undivided property, rather than particular units. The deeds reflect only their ownership percentages. Each owner has the right to use a particular dwelling, which is reflected in a written contract signed by all co-owners. This must not be confused with condominium ownership.

    The ability to receive “Fractional Loans,” which enables co-owners to obtain individual loans, significantly reduces the risk of co-ownership. Fractional Loans enable each co-owner to have an individual loan. The loan is secured by the co-owners share of percentage in the property so if one co-owner should default it does not impact the other co-owners. This lender finances the acquisition and development/conversion of multifamily properties into TICs, and is one of the only lenders in California offering Fractional Loans to individual TIC owners.

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    National Small Balance Financing Starting at 4.79% w/Step-Down Prepay

    Hot Money

    January 9, 2019

    George Smith Partners is working with a national capital provider providing agency and non-agency small balance loans on multifamily assets from $1,000,000 to $7,500,000 on a non-recourse basis. Rates start at 4.79% for terms from 5 years to 20 years. Loans are structured case-by-case for stabilized assets allowing for longer Interest Only terms and/or step-down prepayment. A recently executed application included two-years IO and a 5,5,4,4,3,2,1 prepayment schedule priced at 4.79% fixed for seven years. Leverage for multifamily is 80% of total value.

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    National Non-Recourse Portfolio Perm w/Zero Pre-Pay

    Hot Money

    December 19, 2018

    George Smith Partners is working with a national portfolio capital provider that is structured with no pre-payment penalty. Loan origination fees of 0.50% for transactions up to $50,000,000 and there are no exit fees. Non-recourse funding up to 60% of cost, rate is set at acceptance of LOI, DSCR requirement of 1.45-1.50x and most loans close within 60 days of pre-screen. Higher leveraged options are available under similar pricing with a personal repayment guarantee. Properties must be in sub-market areas with communities of 100,000+ population.

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    Fixed Rate Capital for Western US Land Loans

    Hot Money

    December 12, 2018

    GSP is working with a capital provider that will provide recourse fixed rate financing to 75% of cost (90% + on build to suits) including, acquisition, improvements, development, pre-development, discounted payoffs, bankruptcy exit, purchase of notes and cash-out. Fixed rate pricing starts at 9% for terms up to 1 year with extension options up to 3 years for Multifamily, Office, Industrial, Retail, Special-Use, Entitled Land and Construction. Loan sizes range from $1,000,000 to $10,000,000 for transactions located in California, Arizona, Nevada, New Mexico and Washington.