Bridge

George Smith Partners identified national bridge lender advancing floating rate transactions for all transitional property types from $10,000,000 to $100,000,000. Funded up to 70% of future stabilized value, floating rates start at LIBOR + 275 for a one year term plus options. Sub-1.0 coverage (ie below break-even cash flow) will be supported with a lender funded interest reserve. All transactions are pre-payable with no penalty. All executions are non-recourse beyond standard carve-outs.

George Smith Partners is working with a national bridge lender funding fixed-rate reposition transactions from $15,000,000 to $75,000,000 in primary and secondary markets. Bridge rates start at 5.25% fixed for terms up to three years. In today’s rising interest rate environment, many investors and developers prefer fixed rate bridge options in order to mitigate the risk of rate fluctuations and avoid purchasing a rate cap agreement at closing. Leverage for Office, Multifamily, Industrial, Hotel, Self-Storage & Grocery Anchored and High Street Retail up to 80% of cost. The bridge program offers future funding and prepayment with a minimum 12 months of call protection.

9 – 16 – 09 Transaction Description: GSP has identified a new debt fund comprised of a group of ex-CMBS professionals that is looking to deploy capital. The fund will target the lending niche between conservative insurance company loans and higher-risk bridge loans and preferred equity. The fund is currently targeting borrowers with short-term maturities who need to refinance and prefer non-recourse debt. In addition to senior debt, the fund will finance purchases of distressed properties and will selectively write B-notes, mezzanine loans and bridge loans. The lender plans to keep the loans on its balance sheet – may consider securitization as an exit strategy when the CMBS market returns. Transaction Size: $10M -$50M Rate: 8% – 10% Loan Term: 3 to 7 years Amort: 30 years Max LTV: 75% Min DCR: 1.3 Non-recourse Property Types: All major asset classes Prepayment: Yield Maintenance Fees: 1.0% Geography: Large MSAs