Hot Money

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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.

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    Multifaceted Finance Company with $7 Billion Allocation

    Hot Money

    March 28, 2017

    GSP identified a non-recourse capital provider funding loans from $30,000,000 to upwards of $500,000,000 with a strong appetite for light bridge deals with some in place cash flow.  Sized to as low as a 4% debt yield on in place cash flow, this lender will fund on an interest only basis to a 1.0 debt coverage ratio.  Loans will generally be 3 years with 2 one year extensions, but can be as long as 7 years. Pricing starts at LIBOR plus 3.25%.  Permanent Debt will be sized to 70% LTV and priced competitively. Only high quality assets in primary markets will be considered.  Mezzanine financing starts at $50,000,000 and up to 70% LTV and will price aggressively for best in class assets.

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    4.99% Current Rate on Light Value Add Transactions

    Hot Money

    March 22, 2017

    GSP has sourced a private lender offering non-recourse loans from $1,000,000 to $15,000,000 to 60% LTV.  Loan are priced between 7.50% and 8.99% with up to 2% origination and no-prepayment penalty.  Transactions with low going in cash flow can take advantage of the lender’s offer to fix the current pay to 4.99% and accrue the remainder of the interest due until the end of the 24 month term without compounding interest.  No appraisal is required and lender can close in three weeks or less.

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    Fixed Rate Construction Financing

    Hot Money

    March 15, 2017

    George Smith Partners is placing ground up construction requests with a Regional Bank funding California multifamily rental development with five year fixed rate debt.  Sized to 65% of total construction cost, current coupons are sub-3.5% fixed for five years prior to floating over 30 day LIBOR for the remainder of the ten year term.  Interest is paid on funds as drawn; there is no negative arbitrage, and paid through an interest reserve on an interest only basis during construction.  The loan will begin to amortize upon stabilization.  Prepayments are structured as a step-down with the opportunity of a recourse burn-off.

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    Stretch Senior CMBS Loans

    Hot Money

    March 8, 2017

    An active CMBS lender is lending up to 80% LTV and as low as 5% going-in debt yield on fixed rate non-recourse loans.  The lender will originate the CMBS loan and hold the B-piece.  Transactions range from $5,000,000 to $50,000,000 and term can be up to 10 years.

     

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    Competitive Non-Recourse Bridge at L+300 and Mezzanine Debt Starting at 7% Fixed

    Hot Money

    March 1, 2017

    George Smith Partners identified a nationwide non-recourse bridge lender originating loans from $25,000,000 to $200,000,000.  The lender can fund heavy transitional, whole construction loans, or construction mezzanine financing.  Pricing starts at LIBOR+300 for light bridge deals.  Mezzanine loans behind permanent debt can be priced starting at around 7% for institutional quality assets

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    Small Balance Preferred Equity for Construction or Transitional Projects

    Hot Money

    February 22, 2017

    Developers previously halted by lack of sufficient equity in their deal can pick their shovels back up. GSP is working with a lender that can originate construction loans for multifamily, retail, office, industrial, and select condo projects up to 90% LTC to 70% LTV on an un-trended basis. Transactions will be considered in the top 100 MSAs. Target transaction range from $15,000,000 to $50,000,000 with pricing that starts at 750 over LIBOR with existing inter-creditor agreements already in place with banks. The lender can also inject preferred equity investments starting as low as $2,000,000 with pricing around 1400 to 1600 over LIBOR for sponsors who have bank financing already in place. Benefits of the program include future funding and flexible minimum interest before prepayment.

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    Flexible Nationwide Bridge Lender

    Hot Money

    February 15, 2017

    A nationwide bridge lender is lending on transitional and value-add properties on loan sizes $3,000,000 and up to 85% LTV with interest rates starting at 30 Day LIBOR +500. Loans can be up to 5 years interest only to allow a business plan to complete and have the property reach stabilization. Non-cash flowing assets are acceptable. The lender can underwrite a variety of asset classes including office, retail, multifamily, student housing, senior housing, self-storage, and hospitality.

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    Life Insurance Company Lending Construction to Permanent Loans from $25,000,000

    Hot Money

    February 8, 2017

    Filling the void of construction lenders, George Smith Partners is originating construction to permanent loans for a life insurance company for loans $25,000,000 and up for multifamily, retail, and office properties. Sized to 60% LTC, the loans are non-recourse except for completion guaranty. The permanent loan is sized to 7.5%-8.5% debt yield depending on asset class. The lender will also provide large bridge loans for institutional quality buildings and a defined business plan.