Hot Money

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    95% Leverage Equity Capital

    Hot Money

    January 16, 2018

    Treasuries Stabilize as Asian Fears Subside, Inflation Rumbles……Both the Japanese and Chinese induced “taper tantrums” appear to be false alarms or saber rattling. The 10 year treasury yields jumped to 2.60% on rumors and reports of less bond George Smith Partners identified an institutional capital provider with the flexibility to capitalize cash flowing and non-cash flowing commercial projects utilizing preferred equity, and joint venture equity on a nationwide basis. Minimum sub-debt/equity capital investment of $2,000,000 are required; leveraged up to 95% for multifamily projects. Preferred property types include multifamily and Net Leased Assets.

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    CMBS and B Piece Buyer in One

    Hot Money

    January 10, 2018

    To further reduce uncertainty of execution, an active CMBS lender is advancing up to 75% of value with plans to hold the B Piece on their balance sheet to maintain certainty of execution. Debt Yields as low as a 7.5% for non-recourse fixed rate requests will be underwritten. Transactions range from $5,000,000 to $100,000,000 and term can be up to 10 years.

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    Mezzanine/Preferred Equity behind existing CMBS/Bank Debt

    Hot Money

    January 3, 2018

    George Smith Partners identified an institutional capital provider funding subordinate debt behind existing CMBS debt for all property types nationwide. The sub-debt lender will fund fully stabilized assets up to 85% of cost/value with various pay structures. Terms are up to ten years and pricing starts at 8% for a current pay and requires accrual or equity participation. All structures are within full compliance of the existing senior debt.

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    National Direct Lender from $3,000,0000 to $25,000,0000

    Hot Money

    December 20, 2017

    George Smith Partners identified a national floating-rate balance sheet lender funding bridge transactions up to $25,000,000 on a non-recourse basis. With the ability to advance up to 80% of total capitalization, pricing starts at LIBOR + 400 for partial or non-cash flowing assets. All core asset classes in primary and secondary markets are underwritten with no minimum DCR or debt yield required at funding.

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    Life Company with Allocation for Construction, Bridge, and Permanent Loans for Unique Assets

    Hot Money

    December 6, 2017

     

    GSP is originating debt with a national life company for transactions from $5,000,000 to $125,000,000. Fixed or floating non-recourse bridge loans start at $5,000,000 and above with pricing starting at LIBOR plus 4.50% with leverage up to 80% LTV. Properties with below break-even debt coverage will be reviewed on a case by case basis. This balance sheet lender will finance non-recourse construction loans $50,000,000 and above to 65% LTC starting at LIBOR plus 4.50%. Typical terms for bridge and construction are interest only for 3 years fixed with leverage up to 70% LTV. Permanent loans are 5 to 20 years fixed. The capital provider will fund asset classes that other life companies typically shy away from.

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    Heavy Bridge Capital and Non-Recourse Ground-Up Construction Nationwide

    Hot Money

    November 29, 2017

    GSP is originating debt with a balance sheet lender specializing in heavy bridge loans from $20,000,000 to $100,000,0000 to 65% LTV. Recent tombstones include vacant buildings and a fractured condo. Ground-up construction financing is also available on a non-recourse basis to 60% of cost. Pref-equity may be layered on to 75% of total capitalization. All structures are priced from LIBOR + 425 and 1 point. There is no exit fee for the three-year term.

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    Regional Portfolio Lender with Step-Down for Commercial Assets

    Hot Money

    November 22, 2017

    With the majority of local and regional banks focused exclusively on multifamily products, GSP is originating commercial real estate loans with a regional portfolio lender offering five and seven year fixed terms mid-to-high 4% range. A personal repayment guarantee will net a 10 basis point reduction in rate. Ten year terms are structured as a 5+5 with a rate reset at the beginning of year 6. Prepayments step down from 3% and are open the final 12 months of the fixed term. Stabilized and light-bridge West Coast transactions from $3,000,000 to $10,000,000.

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    National Portfolio Funding with Step Down Prepayment Penalties

    Hot Money

    November 15, 2017

    George Smith Partners identified a national portfolio lender offering a permanent fixed rate structure with step down prepayment penalties. This capital provider offers 5, 7 and 10 (5+5 and 7+3 options) year fixed rate terms for multifamily, manufactured housing, office, industrial, retail, hospitality, and self-storage, up to 80% of cost/value for Multifamily and MHC and 75% of cost/value for the other property types with flexible levels of recourse depending on LTV and DSCR. Transactions range from $5,000,000 to $25,000,000+ for the program. Funding is underwritten using in place cash flow to a 1.25x DSCR.

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    Non-Recourse Bridge Lender to 80% of Capitalization

    Hot Money

    November 8, 2017

    George Smith Partners identified a national capital provider funding bridge transactions from $4,000,000 to $50,000,000 on a non-recourse basis. With the ability to advance up to 80% of purchase price plus 100% of renovation cost, interest only pricing starts at LIBOR + 375 for partial or non-cash flowing assets. All core asset classes in primary, secondary and tertiary markets are underwritten with debt yield required at funding.

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    National Lender Offering Creative Financing Solutions Backed by $27 Billion Balance Sheet

    Hot Money

    November 1, 2017

    George Smith Partners identified a national commercial real estate originator offering stabilized fixed-rate and reposition floating-rate debt. Their discretionary bridge capital is supported by a $27B balance sheet for core assets and hospitality, self-storage, and student housing products. Transactions range from $5,000,000 to $300,000,000 for the fixed rate program and leverage to 75% of cost. Sub-1.0 cash flow is supported with a lender funded interest reserve, funded to 80% of purchase and 100% of good news dollars for reposition requests. All transactions are non-recourse beyond standard carve-outs.

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    Middle Market Portfolio Lender Providing Debt and Equity Capital

    Hot Money

    October 25, 2017

    George Smith Partners identified a national portfolio lender funding mortgage loans and preferred equity transactions up to $50,000,000 and mezzanine transactions up to $20,000,000 on a non-recourse basis.  With the ability to advance up to 85% of total capitalization, pricing starts at LIBOR + 500 and a focus is on industrial assets. The lender is open to multifamily, office, anchored retail, self-storage and has a small appetite for hospitality.

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    National Portfolio Funding with No Lending Limits or Prepayment Penalties

    Hot Money

    October 18, 2017

    George Smith Partners is placing acquisition and refinance debt with a national portfolio lender offering a generic fixed rate structure with no lending limits or prepayment penalties. This capital provider offers 3, 5, 7, 10 and 15 fixed rate terms for multifamily, office and retail up to 75% of cost/value. Funding is underwritten using traditional CMBS guidelines with 1.25 minimum DCR for this on-book execution.