Hot Money

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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.

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    National Reposition Non-Recourse Bridge Program; $5,000,000 to $25,000,000

    Hot Money

    October 5, 2016

    George Smith Partners is placing bridge loan requests below break-even coverage with a non-recourse capital provider on a national level. Funding from $5,000,000 to $25,000,000, pricing ranges from LIBOR + 450 to 550 for a three year term to 80% of total capitalization. Significant reposition construction, (excludes ground-up), tenant improvements and lease costs are funded on a non-recourse basis.

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    Horizontal v Vertical or an L-Strip?

    Hot Money

    September 28, 2016

    The majority of the Investment Banks have already positioned themselves to be within Basel III compliance despite having almost three months until the regulations go into effect.  Risk retention impedance aside, the CMBS market has recovered from the Summer instability, is active and posting bankable applications.  Spreads are once again priced over SWAPs, currently trading 17 basis points below corresponding Treasuries.  At least four US Banks are holding their retention rather than laying the risk off to the B Piece Buyer, thus minimizing cost and delivering a higher expectation of close as applied for.

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    Portfolio Commercial to 70% of Value from $20,000,000

    Hot Money

    September 21, 2016

    George Smith Partners identified a national balance sheet lender funding stabilized and transitional assets from $20,000,000 to $100,000,000 on a non-recourse basis. With the ability to advance up to 75% of value for multifamily and 70% for core commercial assets, pricing starts at LIBOR +400 for floating rate reposition requests and 10 Year Treasury +225 for stabilized executions. Additional leverage and mezzanine financing is selectively available.

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    80% LTC Portfolio Construction Debt to $30,000,000

    Hot Money

    September 14, 2016

    George Smith Partners is placing requests for ground-up construction transactions and min-perms with a balance sheet lender funding from $2,000,000 to $30,000,000 for Western state projects. Oil regions are not discriminated against. With the ability to advance up to 80% of total capitalization, this capital provider underwrites to the take-out. Whole loans are priced from LIBOR+300 and non-recourse construction will be considered for transactions to 50% of actual cost.

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    Oil Region Construction Debt to $15,000,000

    Hot Money

    September 7, 2016

    George Smith Partners identified a mid-western portfolio capital provider funding ground-up construction transactions and five year mini-perm term loans located in 10 mid-western states including Texas. Oil regions are not shied away from. Out of footprint transactions will be funded for mid-western sponsors. Priced from LIBOR plus 250 to 400; non-recourse construction will be considered for transactions to 50% of cost. Loans from $2,000,000 to $15,000,000 are financed to 75% of total cost with a repayment guarantee that burns off at stabilization.

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    No CMBS Retention Issues

    Hot Money

    August 31, 2016

    George Smith Partners identified a CMBS originator that holds their B-piece on-book, mitigating the pending Dodd/Frank regulatory risk retention issue. Rather than layering on mezzanine debt, they increase the B-piece that is ultimately held, allowing for a singular debt stack to 85% of value without the A/B tranche and separate documentation. This capital provider also serves as the master servicer of the loan. Transactions from $10,000,000 are funded for 3 to 10 year terms with an option of offering a step-down prepayment schedule.

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    National Non-Recourse Bridge Debt to 85% LTC

    Hot Money

    August 24, 2016

    George Smith Partners is placing bridge and reposition loan requests with a national balance sheet lender funding from $1,000,000 to $40,000,000 on a non-recourse basis. With the ability to advance up to 85% of total capitalization, pricing starts at LIBOR + 550 for sub-1.0 cash flows for Class B assets in gateway cities. Limited service flagged hospitality will fund to 75% of cost + 100% of all PIP costs for three years prior to extensions. Interest is not paid until funds are drawn and loan fees (1 to 2 points) are paid at exit to maximize leverage.

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    80% LTC “For Sale” Housing from a private REIT

    Hot Money

    August 17, 2016

    George Smith Partners identified a private REIT funding ground-up senior and mezzanine construction as well has bridge debt from $2,000,000 to $15,000,000 for in-fill residential condo reposition or development. Estate home “fix & flip” product is also available for investors. Geographic targets are western and north-eastern states. Sized to 80% of cost; pricing ranges from 6% to 9% based on leverage.