Hot Money

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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.

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    High Leveraged Non-Recourse Bridge

    Hot Money

    August 3, 2016

    George Smith Partners identified a whole loan provider for reposition transactions to 80% of total capitalization for one-stop capital. This capital provider will also “top off the tank” and participate in a mezzanine or pref-equity position behind other senior lenders from $10,000,000. Larger transactions are priced more competitively based on size. Whole loans from $30,000,000 are priced from LIBOR + 400 on the combined blended coupon – pricing is future Debt Yield based. Secondary markets and zero cash flowing assets are accepted for value-add executions for up to a five year term.

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    Small Balance On-Book National Non-Recourse Program

    Hot Money

    July 26, 2016

    George Smith Partners is placing non-recourse debt on stabilized asset with a national capital provider for on-book Life Insurance quality assets.  Fixed or floating rate coupons are competitive with alternative on-book and securitized product although total lender third-party costs are capped at $25,000 (including legal) for transactions from $2,000,000 to $15,000,000.  Prepayments may be structured to accommodate the Sponsors’ business plan. Sized to 75% of value, a 8.0% or better debt yield must be supported at the time of funding.

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    Pre-Risk Retention Pricing

    Hot Money

    July 20, 2016

    The latest Dodd/Frank facet makes application Christmas Eve and is anticipated that the complicated risk retention will add to the cost of a CMBS execution. Several originators are testing retention structures prior to the mandate to confirm sizing and pool pricing. Others continue to press for recordations by September 30th to take advantage of the current compressed rates and securitize prior to the unknown impact of the regulations. A handful of CMBS originators have contacted George Smith Partners with “Blue Light Specials” with razor thin spreads for stabilized transactions that will fund and record by the end of September.

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    Balance Sheet Large Bridge Program

    Hot Money

    July 13, 2016

    Large non-recourse bridge loan requests are being fielded by a diverse group of mostly debt funds seeking wider yields. George Smith Partners is placing cash flowing reposition requests with a portfolio lender pricing from LIBOR + 300; $25,000,000 and up to 75% of costs to be held on-book until maturity. A 7.0% minimum debt yield is required at close. Core asset classes with light reposition, lease-up and future TI/LC fundings in core and secondary markets are considered.