Hot Money

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    Multifaceted Finance Company with $7 Billion Allocation

    Hot Money

    March 28, 2017

    GSP identified a non-recourse capital provider funding loans from $30,000,000 to upwards of $500,000,000 with a strong appetite for light bridge deals with some in place cash flow.  Sized to as low as a 4% debt yield on in place cash flow, this lender will fund on an interest only basis to a 1.0 debt coverage ratio.  Loans will generally be 3 years with 2 one year extensions, but can be as long as 7 years. Pricing starts at LIBOR plus 3.25%.  Permanent Debt will be sized to 70% LTV and priced competitively. Only high quality assets in primary markets will be considered.  Mezzanine financing starts at $50,000,000 and up to 70% LTV and will price aggressively for best in class assets.

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    4.99% Current Rate on Light Value Add Transactions

    Hot Money

    March 22, 2017

    GSP has sourced a private lender offering non-recourse loans from $1,000,000 to $15,000,000 to 60% LTV.  Loan are priced between 7.50% and 8.99% with up to 2% origination and no-prepayment penalty.  Transactions with low going in cash flow can take advantage of the lender’s offer to fix the current pay to 4.99% and accrue the remainder of the interest due until the end of the 24 month term without compounding interest.  No appraisal is required and lender can close in three weeks or less.

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    Fixed Rate Construction Financing

    Hot Money

    March 15, 2017

    George Smith Partners is placing ground up construction requests with a Regional Bank funding California multifamily rental development with five year fixed rate debt.  Sized to 65% of total construction cost, current coupons are sub-3.5% fixed for five years prior to floating over 30 day LIBOR for the remainder of the ten year term.  Interest is paid on funds as drawn; there is no negative arbitrage, and paid through an interest reserve on an interest only basis during construction.  The loan will begin to amortize upon stabilization.  Prepayments are structured as a step-down with the opportunity of a recourse burn-off.

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    Stretch Senior CMBS Loans

    Hot Money

    March 8, 2017

    An active CMBS lender is lending up to 80% LTV and as low as 5% going-in debt yield on fixed rate non-recourse loans.  The lender will originate the CMBS loan and hold the B-piece.  Transactions range from $5,000,000 to $50,000,000 and term can be up to 10 years.

     

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    Competitive Non-Recourse Bridge at L+300 and Mezzanine Debt Starting at 7% Fixed

    Hot Money

    March 1, 2017

    George Smith Partners identified a nationwide non-recourse bridge lender originating loans from $25,000,000 to $200,000,000.  The lender can fund heavy transitional, whole construction loans, or construction mezzanine financing.  Pricing starts at LIBOR+300 for light bridge deals.  Mezzanine loans behind permanent debt can be priced starting at around 7% for institutional quality assets

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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.