November 26, 2018
Antonio Hachem gives his insight to Connect Media regarding capital markets and the availability of cash-out financing in the current environment.
What qualities are necessary in an asset for a borrower to realize cash-out proceeds?
Lenders are more likely to be open to cash-out refinancing when the borrower is substantially invested into an asset. A borrower’s original basis in the property no longer matters. For example, in our recent Sacramento financing, the borrower had invested in extensive capital improvements and value-add renovations to keep the property competitive alongside market rate multifamily assets in the region. The lender sees this as substantial “skin in the game,” and is more apt to reward that investment with cash-out financing.
Click here for the full article, “How to Realize Cash-Out Opportunities in Today’s Economy”: https://www.connect.media/how-to-realize-cash-out-opportunities-in-todays-economy/
October 9, 2018
“Based on the market’s stable long-term growth fundamentals, we were able to identify a lender with a strong appetite for multifamily, and successfully secured a better solution for the Sponsor’s current financing needs, says Hachem. “As lender interest in this product type increases, borrowers are presented with a unique opportunity to redeploy capital. We continue to identify many opportunities for borrowers to realize substantial cash-out proceeds while still locking in a very attractive fixed rate.”
Click here to read the full article from Multihousing Pro, “George Smith Partners secures $17 million in non-recourse financing for 120-unit multifamily community in Sacramento”.
October 5, 2018
Shahin Yazdi, Principal/Managing Director of George Smith Partners, explains how Bridge loans may be the right financing strategy for value-add investors with a clear plan to increase property income.
“Value-add product is becoming harder and harder for investors to find in the current market. Our nation’s continued economic health has driven fundamentals forward, while high investment transaction volume, an influx of hungry capital and a healthy dose of foreign investment have driven up property prices in major metros throughout the United States. While the overall result is net positive for the nation, the challenge for commercial real estate professionals is that projects are becoming increasingly difficult to pencil”…
Click here to read the full article.
October 1, 2018
“There’s been considerable slowdown in the EB-5 market over the past two years. What was once a fertile and cheap source of financing for multifamily and hotel developers is now largely absent”. Great article on EB-5 written by Zachary Streit, J.D. M.S. Click here to read the full story from the September 2018 issue of Real Estate Forum.
October 1, 2018
What Advice Would You Offer Your Former Self About Navigating The World Of CRE Finance?
“First — build as many strong mentor relationships (male and female) as possible. Second — find the icebreaker. My young self HATED networking, mostly because I was inexperienced and just starting to build my track record. By chance I got over this when I started talking golf with some “old boys.” I wasn’t into golf at all but it was always on television at home and somehow I picked up knowledge of the game through osmosis. The conversation about golf was the icebreaker…
Click here to read the full article that was published in Bisnow.
September 17, 2018
When Southern California native Jonathan Lee, joined George Smith Partners (GSP), a leading real estate capital advisement firm in Los Angeles, in 2005, he was a relative newbie to the world of construction financing. Originally, he had set his sights on a job at the U.S. State Department. After graduating from the University of California, Los Angeles in 2001 with a degree in political science, he headed to D.C. where he worked as a foreign service officer at the Foreign Service Institute in Arlington, Va. for two years before tiring of the bureaucracy. He decided to return to the West Coast where he worked for the now-defunct MWH Development from 2003 to 2005 before landing at GSP, where he currently serves as a principal and managing director specializing in construction financing. Click here to read the full article.
August 20, 2018
Zack Streit, Vice President at George Smith Partners explains solutions for when your EB-5 raise has come up short.
There has been a considerable slowdown in the EB-5 market over the last two years. What was once a fertile and cheap source of financing for multifamily and hotel developers is largely absent. The two primary reasons for the slowdown are retrogression (over-allocation of visas to Chinese investors) and Chinese government capital controls. The wait time for EB-5 investors to obtain visas in the U.S. has doubled from a 3-5 year timeframe to 7-10 years…
Click here to read the full article as seen in the August 17, 2018 GlobeSt publication.
August 1, 2018
Gary Mozer, Principal/Co-Founder of George Smith Partners explains “How to Secure Financing for Retail In Today’s Climate” in Shopping Center Business online.
Retail financing, both debt and equity, has become a challenge for many owners, developers and investors throughout the U.S. based on negative press about retail, a perception that the internet will take down many tenants and the weak financial condition of a number of large retailers. Though capital markets are strong, many property owners and investors are finding it difficult to identify lenders willing to provide the type of financing they need for their retail developments, acquisitions and redevelopments. Some lenders are not providing enough money. In other cases, borrowers are finding that the cost of capital is not feasible. Often, lenders and investors aren’t saying no —they are simply offering capital at too high a rate. This squeeze could not come at a more pivotal moment for retail investors…
Click here to read the full article:
June 13, 2018
With interest rates increasing, some investors are taking a moment to review their loan portfolio to see where they can mitigate the potential impact of higher rates. G.H. Palmer has been fervently combing through his portfolio for nearly a year—and he has seen big benefits in refinancing early and paying a pre-payment penalty to get into a more profitable loan structure. Gary Tenzer, co-founding principal at George Smith Partners, has been guiding the process. The most recent refinance under this model is the $158.8 million in financing for Colony Townhomes, a 752-unit multifamily property located in the Canyon Country community of Santa Clarita, which GlobeSt.com has learned of exclusively.
Click here to read the exclusive story published in GlobeSt.
June 11, 2018
“Floating-rate debt offered by banks for ground-up construction was very attractive in the recent past. With the increase to LIBOR, rising interest rates and the fear of unpredictability in the capital markets, however, borrowers are are more attracted to longer term debt construction financing with fixed rates at funding for the entire loan term. Construction to perm financing and takeout financing upon completion of construction – prior to stabilization with life insurance companies is becoming more popular”.
Click here to read The Popularity of Life Company Construction to Permanent, Takeout Financing by Antonio Hachem.
May 31, 2018
Shahin Yazdi, Principal/Managing Director of George Smith Partners was interviewed on Think Realty Radio. Shahin discusses how he secures complex financing across all product types and discusses challenges that new and seasoned investors are faced with.
Click here to listen to the recording.
We hope you enjoy reading the Capital Markets interview transcript.
May 16, 2018
Dutchints Development Spends $48MM for Los Altos Property
The debt portion of the financing was provided by George Smith Partners, which helped arrange the high-leverage $41,000,000 bridge loan for the acquisition. We were able to fulfill this requirement in a 60-day period and secure financing for 24 months at an 85 percent loan-to-purchase price.
Click here to read the full article.