Hot Money

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    Collateralized Revolving Line of Credit

    Hot Money

    November 14, 2018

    George Smith Partners is funding bridge and stabilized transactions from $500,000 to $10,000,000 on a recourse basis in California, Arizona, Nevada, Washington and Oregon. This portfolio lender offers the ability to finance the senior note as well as record a second trust deed behind their own first to be used as a revolver. As the credit facility is secured, there is no 364 day “clean-up” required. Interest is only paid on the outstanding balance if any and there is no stand-by fee or utilization fee. Revolver rates start at 6 month LIBOR for terms up to 30 years.

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    Bridge Financing Fixed at 5.25% Rate | Bridge Loans & Bridge Lender

    Bridge

    November 7, 2018

    George Smith Partners is working with a national bridge lender funding fixed-rate reposition transactions from $15,000,000 to $75,000,000 in primary and secondary markets. Bridge rates start at 5.25% fixed for terms up to three years. In today’s rising interest rate environment, many investors and developers prefer fixed rate bridge options in order to mitigate the risk of rate fluctuations and avoid purchasing a rate cap agreement at closing. Leverage for Office, Multifamily, Industrial, Hotel, Self-Storage & Grocery Anchored and High Street Retail up to 80% of cost. The bridge program offers future funding and prepayment with a minimum 12 months of call protection.

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    Mezzanine Financing for Affordable Housing

    Hot Money

    October 31, 2018

    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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    National Full Capitalization Hotel Financing

    Hot Money

    October 24, 2018

    George Smith Partners identified a national “Full Structured” hotel financier funding permanent hotel bridge, mezzanine loans and preferred equity investments secured by hotel assets for acquisitions, recapitalizations, cash-out re-financings, and renovations. Permanent financing up to $50 million; fixed for 20-30 years at 4.5%-6.5% with terms up to 10 years and leverage up to 80% of cost. Bridge debt to $50 million; fixed or floating at 6.0%-9.0% with terms to 5 years and 85% of stabilized value. Mezzanine tranches to $10 million; rates from 12%, Interest only or matched to senior loan. Leverage is limited to 85% of value. Preferred Equity to $10 million; rates between 13% to 20% to 95% of cost. There is no participation for the Pref Equity once their returns are realized.

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    Co-GP Equity Provider

    Hot Money

    October 17, 2018

    George Smith Partners identified a Co-GP equity provider for multifamily, student housing, senior Independent-living, hospitality, industrial, office (including medical and other uses on a selective basis), self-storage and mixed-use sectors. Looking for value-add and opportunistic opportunities (mostly 90/10 or 95/5 deals) in primary and secondary markets nationwide. Target equity investments between $1-10M per deal with an investment period of 2 to 10 years.

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    National Portfolio Permanent Lender With Zero Prepayment

    Hot Money

    October 10, 2018

    George Smith Partners is working with a national portfolio lender that is structured with no pre-payment penalty and loan origination fees of 0.50% for transactions up to $50,000,000. Rate is set at acceptance of LOI and most loans close within 60 days of pre-screen. Partial or non-recourse deals on strong credits that reflect a low LTV and higher than normal debt coverage for properties located in sub-market areas with communities of 100,000+ population.

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    Alternative Financing Cheaper than Traditional Mezzanine Debt and Preferred Equity

    Hot Money

    October 3, 2018

    George Smith Partners is working with a private source of CPACE (Commercial Property Assessed Clean Energy) capital to finance ground-up development in California, Colorado, Utah, Texas, and 18 other states. CPACE is a form of long-term, non-recourse mezzanine financing for construction projects. At rates of 6% to 7%, it can fill 10-20% of the capital stack for a 20 to 25 year term. The financing is repaid through a special property assessment and amortizes like debt. CPACE can be used for any asset class, on projects of any size, in the 22 states where PACE has been approved. PACE can be used alongside other forms of financing such as New Market Tax Credits, LIHTC, TIF, EB-5, and traditional senior financing, among others. The main benefit to sponsors is reduced cost of capital – PACE replaces more expensive mezzanine debt or preferred equity in the capital stack.

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    Permanent Loans Up to 90% of Cost

    Hot Money

    September 26, 2018

    George Smith Partners is working with a national capital provider funding fixed rate owner-user financing from $1,000,000 to $15,000,000 with spreads between 185-275 bpts priced over the five-year Swap. With the ability to advance 90% of purchase price for asset types including: Office, Industrial, Self-Storage, Healthcare/Skilled Nursing and Hospitality terms are up to ten years. Real Estate operated by third-party management companies; ie. Healthcare/Skilled Nursing, Hospitality, etc. will also qualify for this execution. The lender offers creative financing solutions and will close in under 45 days.

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    Mezzanine Financing for Affordable Housing

    Hot Money

    September 19, 2018

    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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    Bridge Loans California – Non-Recourse Bridge Financing at 4.99% Pay Rate

    Hot Money

    September 12, 2018

    George Smith Partners is working with a private bridge lender providing non-recourse short-term pay rate loans secured by first trust deeds on commercial and non-owner-occupied residential real estate in prime California markets. The loan product offers “Pay Rate Protection,” which reduces borrowers’ monthly payment to 4.99% per annum for the entire loan term and defers the remaining interest until loan pay-off without compounding interest. Leverage for Multifamily, Office, Retail, Industrial, Mixed-Use, Covered Land, and Non-Owner Occupied Residential up to 65% of As-Is value for transactions up to $7.5 million with fixed interest rates between 7.99% and 8.99%. Transactions can be completed in seven business days and there are no prepayment penalties.

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    Bridge Loans – Bridge Lender Offering Aggressive Pricing

    Hot Money

    September 4, 2018

    George Smith Partners is working with a national middle-market portfolio lender funding bridge transactions from $10,000,000 to $75,000,000 on a non-recourse basis. Leverage for multifamily goes up to 75% and pricing starts at LIBOR + 3% for loans sizing to a going-in 3.75% debt yield. The lender will finance Multifamily, Office, Retail, Industrial, Hotel and Student Housing. With the ability to close in 30 days from executed application, three to five year terms are available. Cap strike prices and term lengths are structured to accommodate the business plan and minimize cost. All decisions are discretionary; loans are serviced locally and not part of an underlying bank line or targeted for a CLO execution.

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    Mezzanine/Preferred Equity Capital for Value-Add and Opportunistic Construction Loans

    Hot Money

    August 29, 2018

    George Smith Partners identified a national lender offering preferred equity programs ranging from $10,000,000 to $100,000,000 in primary and secondary markets. Asset types include industrial, office, hospitality, retail and multifamily. With the ability to advance 70%+ of purchase price for bridge debt, pricing starts at LIBOR + 290 with floating rates up to five years. Preferred Equity will extend to 75-90% of cost for value-add and opportunistic transactions at 12%+.

    For common equity, the value-add fund is seeking project level returns of 14%+ with average cash on cash yields of 6%+ across the country with a focus on industrial, multifamily, office, and retail with a minimum equity check size of $15 million. The opportunistic fund is seeking returns of 18%+ in primary and emerging primary markets across the country, covers all product types and will do development as well. Minimum equity check for the opportunistic fund is $25 million.