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Bridge Loans and Financing

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    $15,800,000 Bridge Loan for 91 Unit Multifamily Property in Lease Up in the Inland Empire, California

    March 1, 2024

    Transaction Description 

    George Smith Partners successfully arranged a $15,800,000 bridge loan for a newly constructed 91-Unit apartment complex in the Inland Empire. The complex is age restricted for independent senior living, 55 and over. Amenities include resort style pool, spa/hot tub, fitness center, recreation room, BBQ-Picnic area and hair salon. Demand has been strong as lease up began in May and the property is expected to be fully stabilized over the next few months. The financing allows borrower to push income and time an agency perm loan as rates (hopefully) decline.

    Rate: 30 Day Term SOFR + 3.95% Floating

    Term: 12 Months plus 2, 6 – month extensions

    Amortization: Interest Only

    Origination Fee: 0.5%

    Guaranty: Non-Recourse

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    $15,400,000 Bridge Financing for Tarzana Medical Office in Tarzana, California

    February 1, 2024

    Transaction Details: 

     George Smith Partners successfully arranged bridge financing for the lease-up of a medical office building near the brand-new Providence Cedar-Sinai Tarzana Medical Center which opened at the end of 2023. The building was originally traditional office.  The Sponsor allowed leases to roll and spent $5mm on an extensive renovation and conversion to 100% medical office.  Once the renovation was complete, the Sponsor received significant tenant interest. Now that the building is almost fully leased, the subject loan will allow the Sponsor to complete the tenant improvements and stabilize the property.  The subject loan was competitively priced at P+0.25% and provides a mini-perm option once the property is stabilized. 

    Rate: Prime + 0.25% 

    LTV: 60% 

    Term: 3 Years 

    Origination Fee: 0.50% 

    Exit Fee: None 

    Guaranty: Recourse 

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    $22,000,000 Bridge Loan for Industrial Land in a Western State

    December 7, 2023

    Transaction Description:

    George Smith Partners successfully arranged a $22,000,000 loan for 92 acres of entitled land in Apex, a pioneering new growth area in a Western State. While some of the adjacent land has recently traded, utilities and roads are currently under construction. The Sponsor will build over 1 million square feet of industrial buildings and is currently talking to potential equity partners. The Sponsor had retained a national mortgage brokerage company that was unable to locate any financing for the Sponsor. The Sponsor approached GSP eight weeks prior to their maturity date to assist in the refinance. GSP completed a full marketing and identified two competitive lenders that could reach the desired proceeds level and close quickly. One of the lenders had significantly more local market experience providing more surety of close.


    Rate: Confidential

    Term: 18 Months

    Origination Fee: 1.5%

    Exit Fee: 0.50%

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    $9,000,000 Bridge Financing for 100,000 SF Single Tenant Office; Inland Empire, CA

    March 2, 2023

    Transaction Description:

    George Smith Partners arranged $9,000,000 in bridge financing to refinance a single-tenant office property in the Inland Empire. The Property has been nearly 100% leased to a county entity for 20 years, with lease renewals every 5-7 years. The Sponsor is leaving the unused space vacant in order to attract a single-tenant government lease buyer. GSP had arranged CMBS financing on the property in 2012 that came due in late 2022. Due to the timing in getting a new lease executed, the Sponsor asked for and received a short extension from the lender/servicer. GSP sourced a bridge lender that was poised to fund upon execution of the lease and estoppel. The loan paid off the existing loan and provided funds for tenant improvements mandated in the lease extension. It also gives the Sponsor maximum flexibility to sell or refinance over the next 2 years.

    Rate: 10.50% Fixed for Year 1, then Floating over SOFR for Year 2
    LTV: 65%
    Term: 10 Years
    Amortization: Interest Only
    Yield Maintenance: 6 Months Minimum Interest, then Open
    Origination Fee: 1%
    Prepayment: Open
    Guaranty: Non-Recourse

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    Bridge Financing for Cash-Out Refinance of a Special Purpose Property; Los Angeles, CA

    February 21, 2023

    Transaction Description:

    George Smith Partners successfully advised on the placement of a $1,850,000 cash-out refinance of a 72,471 SF commercial condominium comprising 4-levels of public parking and storage facility located within a 38-story residential high-rise in downtown Los Angeles. Although the property is stabilized, lenders expressed concerns over the condominium collateral, special-purpose, and negative cash flow history during COVID.

    GSP was able to get a Lender comfortable with the sustainability of the net operating income vis-a-vie the Borrower’s ownership and near-stabilization of its 3-levels of commercial, retail, and office space located within the same project. The Sponsor’s primary objective was to refinance and lower their cost of capital which was previously at 9%. GSP was able to successfully replace the loan with a non-recourse bank loan at 5.14% fixed in addition to providing $350,000 in cash-out proceeds. The rate was locked at the beginning stages of the upward trend in interest rates and GSP was able to get the bank to accommodate an additional rate lock extension.

    Rate: 5.14% Fixed
    Amortization: 30 Years
    Term: 7 Years
    Guaranty: Non-Recourse

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    $102,000,000 Non-Recourse Bridge Financing for an Ultra-Luxury 37-Unit Multifamily Asset; West Hollywood, CA

    March 30, 2022

    Transaction Description:

    George Smith Partners successfully arranged $102,000,000 (approx. $2.75M/unit) in non-recourse, bridge financing for a 37-unit, ultra-luxury apartment building located in the heart of West Hollywood. The fully condo-mapped project features hotel-level service and amenities including daily breakfast, airport drop-off, wellness classes, cooking classes, wine tastings, entertainment lounge, private dining room & kitchen, screening room, fitness center, yoga studio and a leather-paneled bowling alley. The asset boasts some of the highest rental rates on the West Coast.

    Located in one of Los Angeles’ most coveted retail and residential neighborhoods, this trophy asset caters to wealthy residents seeking an amenity-rich community with minimal maintenance and maximal convenience. The best-in-class Sponsor recognized the investment potential of an ultra-luxury product in a prized location—the revered “pumpkin patch” site in West Hollywood. In working with potential lenders for this financing, GSP was able to identify a capital provider who not only understood the as-is value and in-place cash flow of the operating multifamily asset, but also the potential future value as 37 individual high-end condos. The loan closed in 50 days from application.

    All Terms Confidential

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    $53,710,000 Non-Recourse Bridge Financing for a Six Property Portfolio Comprising Conventional Multifamily & Co-living Properties; Los Angeles, CA

    March 16, 2022

    Transaction Description:

    George Smith Partners successfully arranged $53,710,000 in bridge financing for a six-property portfolio comprising three conventional multifamily properties and three co-living properties totaling 113 units (278 beds) in Los Angeles. All six of the properties are in various stages of lease-up. The non-recourse bridge financing refinanced existing construction debt from four unrelated lenders, provided a significant cash out to the Sponsor and allows more time for continued rent recovery in Los Angeles, in anticipation of permanent long-term financing.
    The Properties are in highly dense submarkets with significant levels of rentership, with vacancies approaching 3%. The housing crisis in Los Angeles has yielded significant pent-up demand for attainable housing options. The best-in-class Sponsor recognized the substantial value of the high quality multifamily and co-living properties in strong growth submarkets where demand has consistently outweighed supply, especially for new product. GSP was able to identify a lender who was able to get comfortable with the business plan due the Sponsors familiarity with the markets and demonstrated success with both conventional and co-living properties.

    Interest Rate: SOFR + 4.14% (SOFR floor of 0.10%)
    Term: 3+1+1
    Guaranty: Non-Recourse

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    $47,000,000 Bridge Acquisition Financing for 624-Unit Multifamily, 80% LTC; Houston, TX

    November 17, 2021

    Transaction Description:
    George Smith Partners secured $47,000,000 for an acquisition bridge loan for a two multifamily property portfolio in Houston, Texas. To meet the sellers 30-day closing requirement, GSP used its experience and relationships to quickly identify and close this 80% interest- only financing within the required timeline. GSP was able to execute the Sponsors business plan and secure a high leveraged bridge loan at L+ 3.95 (4.05% coupon). The loan was cross collateralized with both properties, which totaled 624 Units. The Properties were operating at a going-in 5% debt yield when we closed. This interest-only loan included 100% of the capital needed for rehab.

    There were multiple challenges regarding timing, leverage, sponsorship experience and property specific issues. Some lenders were not able to quote the transaction in the short timeframe we had to market, identify, and close this transaction. GSP aided a local family office, an international fund and a strong local operating partner who teamed up to purchase this asset in their first effort together. In addition, several lenders were over allocated in the Houston market and could not handle the size of this portfolio.

    GSP focused on the top three best lenders for this asset type. Due to our great relationships, we were able to quickly pick the best lender and expedite the application process. GSP assisted the Sponsorship team in developing a strong business plan. This included proving the benefits of the multiple sponsorship structure, as well as getting the Lender comfortable with the local partners to operate the properties. GSP understood the dynamics of each sponsorship team and helped the Lender upstand the strategy of operating the Properties as one asset. GSP knew by bundling the two properties together and creating a larger transaction that it would be more appealing to lenders. This would enable lenders to increase proceeds and decrease pricing as compared to financing two separate smaller transactions. GSP ultimately utilized one of our relationship lenders who was willing to invest the upfront time and place aggressive bridge financing, with appealing leverage, proceeds, and terms of 3 years interest-only.


    Rate: Libor + 3.95% (4.05% Coupon)
    Term: 3 Years, with 2 – 1 Year Options
    Amortization: Interest Only
    LTV: 80%
    Guaranty: Non-Recourse
    Prepayment Penalty: 18 Month
    Lender Fee: 1% in / ½% Exit

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    $10,000,000 Acquisition Loan to Purchase Hotel for Multifamily Conversion; Mountain States

    November 3, 2021

    Transaction Description:

    George Smith Partners successfully brokered both the sale and acquisition financing for an extended stay hotel conversion located in the Mountain States region. The Seller, initially intending to undertake the Project, engaged GSP to source bridge financing for the 126-apartment conversion. Most of the conversion will be cosmetic changing the feel from hotel to residential. The hotel had been closed due to COVID, but the Sponsor needed to cancel the Management Agreement with the Operator and vacate the hotel. Because the hotel was in foreclosure, the Seller put the asset in bankruptcy before the trustee sale. This complicated the transaction and resulted in closing the deal two weeks from court approval.

    GSP found a buyer with experience in hotel conversions who understood the Property’s value proposition and the bankruptcy process. With limited time, GSP represented the Sponsor in sourcing $10,000,000 of 3-month Gap financing for the purchase while concurrently working on inexpensive bridge financing. No appraisal was required for the Gap loan. This was an extremely complicated financing with exceptionally short time constraints. GSP was able to serve the needs of both Buyer and Seller and successfully secure financing.

    Rate: 7.95%
    Term: 3 Months
    LTV: 68% Loan to Purchase Price
    Guaranty: Non-Recourse

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    $11,300,000 Acquisition Bridge Loan for 76-Unit Multifamily Property, 70% LTC, 6.5% Stabilized Debt Yield; Salt Lake City, UT

    October 27, 2021

    Transaction Description:

    George Smith Partners secured $11,300,000 in proceeds for the acquisition of a 76-unit multifamily property in a tertiary market outside of Salt Lake City, UT. The bridge loan is structured as $10,795,000 at close and $505,000 in future funding. The fully funded proceeds represent 70% LTC. The loan floats at a rate of LIBOR + 3.15% with a 0.10% floor on LIBOR.

    GSP encountered several challenges when discussing the deal with capital providers. Some lenders quoted a spread as high as 3.65% over LIBOR. Other lenders quoted proceeds less than $10,000,000 because they require a 7.5% exit debt yield. Some lenders considered the market to be too small.

    GSP was able to source a lender that provided very competitive pricing, an exit debt yield of only 6.50%, and an easy close process. The loan closed in about 60 days without any changes to the signed term sheet.

    Rate: Floating at LIBOR+3.15% with a 0.10% LIBOR floor
    Term: 2+1+1+1
    LTV: 71% in/67.5% stabilized
    LTC: 70%
    Debt Yield: 4.75% in/6.50% out
    Guaranty: Non-Recourse

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    $21,700,000 Acquisition Bridge Loan for Multifamily Complex; Phoenix, AZ

    October 27, 2021

    Transaction Description:

    George Smith Partners secured $21,700,000 of bridge financing for the acquisition of a 136-unit multifamily complex in Phoenix, AZ. The Sponsor plans to increase the value of the asset with exterior improvements and interior upgrades as units turn organically. The Property is in the Uptown submarket of Phoenix, which is an up-and-coming area in the Valley that has seen tremendous rent growth in the last few years. Uniquely, there is a disproportionate amount of three-bedroom units compared to one- and two-bedroom units. There is a lack of three-bedroom inventory in the market that the Sponsor believes will help to increase demand at the Property. The non-recourse financing is priced at LIBOR+3.20% and is sized to 70% of total project cost. It carries a three-year initial term and has a yield maintenance period of 15 months.

    Rate: 30-Day LIBOR + 3.20% (0.25% LIBOR Floor)
    Term: 3 Years with Two 12-Month Extensions
    Loan-to-Cost: 70% LTC
    Origination Fee: 0.825%
    Exit Fee: 1.00% (Waived if Refinanced with Same Lender)
    Amortization: Interest-Only
    Guaranty: Non-Recourse with Standard Carveouts

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    $22,070,000 Bridge Loan on 100% Vacant Office Property; West Los Angeles, CA

    October 13, 2021

    Transaction Description:

    George Smith Partners successfully placed $22,070,000 in bridge financing for a vacant, 34,000 SF office building in West Los Angeles. Considering the negative effects of COVID on the office leasing market, capital providers were hesitant in financing a vacant building. The Sponsor envisioned two potential business plans: leasing the building to a single user or a mixed-use scenario where the ground floor would be converted to restaurant/retail. Supported by a strong Sponsor and backed by collateral with a high parking ratio centrally located in Los Angeles’s premier office market, GSP found a lender willing to finance both scenarios. The loan held back funds for tenant improvements, leasing commissions and capital expenditures. This provided flexibility to cope with the uncertainties of the COVID-era office leasing market. With optionality and competitive pricing, GSP negotiated a flexible loan agreement at the desired level of proceeds. Although COVID has turned office into a difficult asset class to finance, GSP guided the deal to a successful closing.

    Rate: L+500
    Term: 3 Years
    LTV: 70% LTC, 65% Loan to Stable Value
    Guaranty: Non-Recourse