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.
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.
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.
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.
August 22, 2018
George Smith Partners has funded large reposition transactions with a national capital provider lending from $50,000,000 to $250,000,000 on a non-recourse basis. With the ability to provide up to 7 years of bridge financing for senior and subordinate loans in primary and secondary markets and across all major product types; [insert semi-colon] this lender will provide new/refinance senior and subordinate loans via a variety of different structures for projects in transition (vacancy lease-up) and traditional value-add. Pricing starts at L+220 for cash flowing assets and ramps up to 500 over LIBOR for heavy construction/reposition assets.
August 15, 2018
George Smith Partners is currently placing non-recourse permanent financing from $1,000,000 to $15,000,000 for stabilized properties located in California, Washington, and Oregon with a West Coast portfolio lender This unique program offers a 5+5 option for commercial and multifamily asset classes priced at 4.5% to 4.75% fixed for 5 years on the ten-year term. Not found anywhere else in the capital markets is their ability to place a 50 basis point rate cap on the Year 6 adjustment. The amortization clock is also wound back to 30 years, reducing the mortgage constant on the remaining loan balance, increasing net cash flow after debt service after the fifth year. Prepayment steps down from 3% and is open the last 12 months of each of the five year segments.
August 8, 2018
George Smith Partners has funded with a national capital provider lending on transactions from $2,000,000 to $30,000,000 on a non-recourse basis. With the ability to advance up to 75% of purchase price, pricing spreads are 140-160 on multifamily, 160-190 on commercial and 190-200 for terms up to 15 years. All core asset classes in Class B markets or better in top 150 MSA’s. Step-down prepayment is structured with the availability to forward rate lock up to 12-months executable at application.
August 1, 2018
George Smith Partners is working with a national provider funding fixed rate bridge loans from $3,000,000 to $25,000,000 starting at 5.0% on a non-recourse basis. With the ability to advance 85% of purchase price for new acquisitions, re-capitalizations, refinancing and special situations. Asset types include Multifamily, Office, Retail, Industrial, Parking Garages, Self-Storage, Mobile Home Parks and Hospitality (on a Recourse Basis). Interest only terms from 24-60 months with extension options and up to 85% of total capitalization.
July 25, 2018
George Smith Partners is working with a capital provider offering mezzanine financing for experienced affordable multifamily housing borrowers who are committed to preserving affordable housing. The mezzanine loan will allow borrowers to increase their leverage up to 90% loan to purchase price (plus an additional 2.5% for costs, if supported) with a minimum term of 10 years from the date of funding an acquisition or refinancing loan. Rates range from 7.15% to 7.85%.
July 18, 2018
George Smith Partners is working with a national bridge lender funding floating rate transactions for all transitional and stabilized property types from $10,000,000 to $100,000,000. Funded up to 85% loan to cost, floating rates start at LIBOR + 300 for terms up to five years. All transactions are non-recourse beyond standard carve-outs.
July 11, 2018
George Smith Partners is working with a California portfolio lender, focused in urban markets funding construction transactions from $1,000,000 to $7,500,000 on a recourse basis. Rates start at Prime + 1% for terms from 1 year to 30 months. Leverage for Speculative Homes, Condominiums, Apartments, and Small Lot Subdivisions go up to 70% of total development cost.
June 28, 2018
George Smith Partners is working with national lender funding bridge transactions over $10,000,000 and multifamily mezz transactions over $5,000,000 on a non-recourse basis. Bridge rates start at 6% for terms up to three years and mezz rates start at 10% for terms up to five years. Leverage for Multifamily, Anchored Retail, Flex/Industrial, Medical Office and Entitled Land for both programs go up to 85% of purchase price. The bridge program specializes in conversions, rehabs, Note DPOs, Note Purchases, Bridge to HUD, Fannie, Freddie and Bridge to construction loans.