Hot Money

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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.

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    National Non-Recourse Lender Originating Streamlined Loans: $1,000,000 to $15,000,000

    Hot Money

    February 1, 2017

    George Smith Partners is originating loans with a national lender specializing in small balance non-recourse loans from $1,000,000 to $15,000,000. The lender can provider short term floating rate loans at 2.25%-2.50% over LIBOR to 60% LTV for loans $5,000,000 and above. Bridge loans for cash flowing assets are being priced at 3.00%-3.75% over LIBOR for loans $10,000,000 and above. Fixed rate loans up to 10 years are sized to 65% LTV and streamlined to close quickly and economically. All lender closing costs including third party reports and legal are capped at $20,000 for loans up to $10,000,000 and $25,000 for loans up to $15,000,000. For a small premium in spread, the lender can lock the spread for up to 60 days. Clients seeking certainty of execution for acquisition of stabilized multifamily, industrial, office, and retail should contact us to take advantage of this product.

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    National Non-Recourse Bank Lending on Construction and Value Add Projects

    Hot Money

    January 11, 2017

    George Smith Partners sourced a portfolio lender selectively funding three year construction loans up to $40,000,000 to 65% of total capitalization starting at 30 day LIBOR + 325 on a non-recourse basis for experienced developers. They are aggressively funding interest only bridge loans for value add multifamily, retail, office, industrial, and select hospitality properties. Both programs offer two 1-year extension options. Term debt can be originated by the lender up to 75% LTV and 65% LTV on a non-recourse basis to stabilized properties to offer a full service execution once the Sponsor’s business plan is completed.

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    Non-Recourse Bridge Loans to 85% of Value

    Hot Money

    January 4, 2017

    George Smith Partners is placing non-recourse senior bridge debt, mezzanine debt, and preferred equity to 85% of value through a national portfolio lender funding transactions from $5,000,000 for debt and from $2,000,000 for mezzanine or preferred equity. Capital Provider offers flexible loan structures with interest only terms between 2 year to 5 years and customized prepayment structures. Floating rate pricing starts from LIBOR + 400. Lender has a strong appetite for multifamily, senior housing, and office properties located in secondary markets for middle market borrowers on properties with some in place cash flow. Non-cash flowing assets and other product types will be reviewed on a case by case basis. Lender will budget ‘good news’ dollars for tenant improvements and leasing commissions. Interest will not be paid on future funding until disbursement.

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    Non-Recourse Perm from $10,000,000 @ 3.85%

    Hot Money

    December 13, 2016

    George Smith Partners has placed permanent debt with a California Capital Provider funding from $10,000,000 to $48,000,000, priced from 3.85%. Fixed for 10 years on a non-recourse basis, all core assets in California major metropolitan cities are underwritten with a minimum of a 10% debt yield and smaller in-state markets with strong credit is considered.

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    High Leverage Non-Recourse Construction Debt to 90% of Cost

    Hot Money

    December 7, 2016

    George Smith Partners is placing non-recourse ground-up construction mezzanine debt, preferred equity and senior debt through a national portfolio lender funding from $3,000,000 to $50,000,000. Capital Provider offers flexible loan structures with terms between 1 year to 10 years and fixed or floating rate. Pricing starts from 12% with no restrictions on asset types or location nationwide for high leverage transactions to 90% of cost. In addition to the ground-up, bridge and permanent loans, programs also include a line of credit for qualified traditional or DST Borrowers.

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    Healthcare Bridge Provider to 90% of Cost: $5,000,000 to $35,000,000

    Hot Money

    November 30, 2016

    National bridge provider will fund $5,000,000 to $35,000,000 of reposition debt sized to a HUD permanent loan to 90% of cost. Our capital provider provides debt on various healthcare assets including: senior housing, assisted living, medical office and skilled nursing. With the ability to fund a zero cash flow conversion at close, this program targets a HUD loan exit. Bridge transactions are priced from L +400 for a 2 to 5 year term. Loan servicing and process management is conducted internally, granting efficiency during the asset rehabilitation.

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    Mezzanine/Preferred Equity behind existing CMBS, Bank, LifeCo

    Hot Money

    November 15, 2016

    George Smith Partners identified an institutional capital provider funding subordinate debt behind existing CMBS, Bank and Life Insurance Company debt. Financing is employed through methods including; transfer of interest, buying out an LP, investing in the LP, inserting a new LLC through an assumption. The sub-debt lender will fund fully stabilized assets up to 75% of cost/value with various pay structures. Terms are coterminous with the senior or may be pre-paid. 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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    Bridge Lender with a LifeCo Execution Funding Ground-Up Construction and Bridge Debt

    Hot Money

    November 9, 2016

    George Smith Partners is placing ground-up construction debt with a portfolio capital provider on a national basis. Requests from $20,000,000 to $100,000,000 are priced from LIBOR+375 to 80% of as-complete value for multifamily assets. Light bridge/reposition transactions will be considered under these same constraints. The same capital provider also has the ability to supplement subordinate capital structured as mezzanine or preferred equity, sized to 75% of value from $10,000,000 to $50,000,000. For construction and bridge subordinate capital, pricing floats from 12% up to 5 year terms. Class A/B core and special use assets in primary and secondary markets are considered.

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    Commercial Real Estate Non-Recourse Line of Credit to 75% of Capitalization

    Hot Money

    November 2, 2016

    George Smith Partners identified a real estate revolver lending program through a Western States Capital Provider funding from $5,000,000 to $20,000,000. Pricing ranges from LIBOR+500 to 700 for a 12 month term to 75% of capitalization; to 80% by exception. This non-recourse credit facility is collateralized with a 1st Trust Deed during the life of the interest only term. In addition to certainty of financing and pricing, Lender provides expedited funding within 7 to 14 days of application.