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    $42,120,000 Stretch Construction Financing for a 188-Unit Build-for-Rent Site in Raleigh/Durham, North Carolina

    February 1, 2024

    Transaction Details: 

    George Smith Partners has successfully arranged a non-recourse stretch senior construction loan of $42,120,000 for the ground-up construction of a 188-unit build-for-rent community in Raleigh/Durham, NC. George Smith Partners, through their expertise in build-for-rent communities and strong relationships with a multitude of lenders was able to negotiate favorable terms for the sponsor including a sizable land lift.  The sponsor self-performed most of the site improvements and partnered with a home builder to erect the townhomes on the finished lots in tranches of 15-20 per month. The loan was priced at a floating rate of SOFR plus 475bps with one 6-month extension option. When built, the project will provide the future occupants from the rapidly growing market of Durham a mix of three and four-bedroom townhomes with two-car garages, an amenity center, access to top school districts, and proximity to high income tech jobs. 

    Loan Amount: $42,120,000 

    Loan-to-Cost: 75% LTC 

    Spread: 4.75% 

    Index: 1-Month SOFR 

    Guaranty: Non-Recourse 

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    $14,100,000 Horizontal Land Construction Financing for 98-Single Family Residential Lots; Homestead, Florida

    November 15, 2023

    Transaction Description:

    George Smith Partners has secured $14,100,000 in funding in support of our Sponsor’s horizontal construction of 98-single-family lots in Homestead, FL. The allocated funds are intended to finance the essential infrastructure for the forthcoming single-family residential community. The lots will be sold in stages to a predetermined homebuilder. Our Sponsor has obtained a revolving loan of 60% LTC, which features a floating rate of Prime + 50, spanning a 24-month term.

    Term: 2 Years with Extension Options
    Rate: Prime + 50
    LTC: 60%
    Guaranty: Non-Recourse

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    $14,000,000 Construction Financing for a 110,929 SF Industrial Project; Western State

    October 18, 2023

    Transaction Description:

    George Smith Partners secured $14,000,000 in construction financing for an industrial project in a western state. The project is a 110,929 SF, 100% spec industrial development in an attractive industrial submarket.

    GSP canvassed banks, credit unions, and debt funds to find a lender that was comfortable with the business plan, which included no preleasing before construction. GSP worked with the Lender and Borrower to structure a loan which provided 65% of the costs to construct, lease, and stabilize the building. As well as a term of 30 months to provide sufficient time to complete the lease-up after completion of construction. The loan was also structured to provide an upsized 10 year perm loan option upon stabilization.

    During structuring negotiations, the Lender acquired a competitor and there were market rumors that they were suspending all lending to digest the acquisition. GSP diligenced the market and arranged supplemental calls with the Lender and the Borrower- resulting in the Borrower having well-placed confidence that the loan would not only close but also on the quoted terms.

    Rate: SOFR + 3%
    Term: 30 Months with an option for an upsized 10 Year Perm Loan
    Amortization: Interest Only
    Guaranty: Recourse with Burnoff upon Achieving Performance Hurdles

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    $4,835,000 Pre-Development Bridge Financing for 205-Unit Multifamily Project; Denver, CO

    August 30, 2023

    Transaction Description:

    George Smith Partners successfully secured a $4,835,000, 72% LTC, fixed, non-recourse, pre-development bridge loan for a 205-unit multifamily ground-up construction project in Denver, Colorado. The bridge loan will be used to complete all the architecture/engineering milestones required to obtain permits and finalize pre-development work prior to breaking ground in Q3 of 2024.

    The Denver metropolitan area is expected to add roughly 216,700 new residents over the next five years, fueled by the expansions of the Denver International Airport and Fitzsimons Medical Campus. The Project is expected to fulfill an underserved workforce demographic by offering an affordable yet high-quality option. The Project will feature a rooftop deck with BBQ grills, outdoor games, picnic areas, a dog run, gym, state-of-the-art security systems, bike parking, package storage, and a mail center with full-time onsite management and maintenance.

    Term: 14 Months
    Interest: Fixed
    Extensions: Two 3 Month Extensions
    LTC: 72%
    Guaranty: Non-Recourse

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    $42,200,000 Mid-Construction to Bridge Refinance of 133-Key Extended Stay Hotel; Nashville, TN

    August 10, 2023

    Transaction Description:

    George Smith Partners successfully arranged $42,200,000 in financing to recapitalize the construction of a 133-key extended-stay hotel on Music Row in Nashville, TN. The Lender disbursed 71% LTC, accompanied by a 12-Month interest reserve.

    Multiple challenges were encountered when discussing the transaction with capital providers. The first being that the hotel is unflagged- many hospitality lenders focus primarily on popular hotelier affiliations during this risk-constrained lending environment. The team encountered a second hurdle related to mid-construction refinancing, which presented a challenging proposition from the outset of our campaign due to the hotel’s planned grand opening before November of 2023.

    The GSP team was determined to leverage the deal with support from the local Nashville sponsor that owns and manages over 600 keys in the Nashville market and over 2,000 keys in the southeast, property location on Music Row in Nashville, and construction completion.

    GSP successfully identified a hospitality Lender that exhibited confidence in the construction recapitalization process. This Lender was equipped to furnish the necessary funds to facilitate a smooth transition into TCO. Additionally, displaying confidence in the projected Average Daily Rate (ADR) assumptions. Notably, the Lender displayed comfort in financing the unflagged and extended-stay hotel, due to the Sponsor’s reputable track record in the market.

    Term: 2 Years with Extension Options
    Prepayment: Open After 18 Months
    LTC: 71%

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    $69,000,000 Construction financing for 2 Industrial Build-to-Suit Properties; Virginia

    July 5, 2023

    Transaction Description:
    George Smith Partners successfully arranged $69,000,000 in financing for the ground-up construction of an over 1,000,000 SF industrial build-to-suit development in Virginia. The loan has a term of two years with one, 12-month extension option and is 62% of cost.

    Located near the Port of Virginia, the project involves the construction of two industrial facilities, one in Suffolk, VA, and another in Portsmouth, VA. The Sponsor has undertaken this Class A build-to-suit development project in response to the pressing need for high-quality industrial space in a market with extremely limited supply and minimal vacancy.

    LTC: 62%
    Term: 2 Years + One 12 Month Extension

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    Bridge Financing for a 15-Unit Multifamily Property; West Los Angeles

    June 14, 2023

    Transaction Description:

    George Smith Partners has successfully renegotiated the construction debt on a $10,000,000 construction loan on a 15-Unit multifamily property in West Los Angeles.


    GSP arranged the original fixed-rate construction loan with a debt fund in 1Q-2020, prior to the Covid moratoria. However, due to the uncertainty of the supply of labor and materials during the pandemic, the Sponsor decided to delay vertical construction for about one year which delayed the lease-up and stabilization thereby reducing the remaining term which reached maturity in May 2023.

    Despite the Sponsor’s willingness to pay down the indebtedness, GSP determined that a restructuring of the existing debt would be more cost effective than bringing in additional equity.


    GSP was able to negotiate with the construction Lender to convert its loan into a one-year bridge facility. The Lender increased the interest rate by 50 bps but did not charge a new origination fee. Hopefully, in one year, the financing markets will improve and an $8,000,000 loan at more conventional pricing will be available.

    Rate: 10.75%
    Fee: Par
    Term: 1 Year
    Min Interest: 6 Months
    Guaranty: Non-recourse

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    $47,000,000 Construction Financing for a 102 Key, Four Star, Boutique Hotel; California

    June 7, 2023

    Transaction Description:

    George Smith Partners arranged a $47,000,000 fixed-rate, non-recourse, construction loan for the development of a four-star boutique hotel in a coastal community of California. When completed, the property will include 102 rooms and a fine dining restaurant.

    The project experienced significant public resistance and ultimately, entitlements took 20 years to obtain. GSP was originally engaged to arrange institutional equity and fixed-rate construction to perm debt in the spring of 2022. GSP was successful in doing so, however, market volatility caused the deal to stall and ultimately the developer elected to dispose of the project to another developer. The new developer engaged with GSP to obtain new financing terms.

    GSP focused on the strength of the sponsorship team, high barriers to entry, supportive hotel flag, positive historical occupancy, ADR-both before and after Covid, popularity of the local demand drivers, as well as the lack of competing quality hospitality properties in the immediate vicinity. Ultimately, GSP arranged a solution that met the needs of the sponsor.

    Rate: Fixed at 8.60%
    LTC: 65%
    Term: 2 Years + 1 Year Extension Option
    Fees: 0.50% Lender Fee
    Guaranty: Non-Recourse except for Standard Carveouts

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    $85,800,000 Senior Construction-to-Perm Financing for a 372-Unit Multifamily Project; Sacramento, CA

    May 16, 2023

    Transaction Description:

    George Smith Partners successfully arranged $85,800,000 in construction financing for a 10-building, 372-unit multifamily development in Sacramento, CA. The project is located in an opportunity zone of Sacramento and is phase A of a 2,200-unit, transit-oriented development. Breaking ground in Q2 2023, this phase of the development will consist of studios, one, two, and three-bedroom apartments with best-in-class amenities, including a pool, fitness center, playground, and clubhouse.

    The Sponsor engaged GSP pre-pandemic. A previous developer had acquired the land in the early 2000s and after completing 95% of the site’s infrastructure, subsequently filed for bankruptcy protection in 2017. The site was given back to the lender in early 2019 and was awarded to the Sponsor by the urging of the City of Sacramento because of their local reputation related to successful projects in the downtown sub-market. Our Sponsor originally intended to begin construction in early 2020 but decided to pivot layout designs to match the new needs of its renters due to the pandemic.

    After an extensive capital marketing process, GSP was able to secure financing to the Sponsor’s parameters with the upside of not having a rate cap requirement. The financing structure is also unique in that it transitions from an interest-only period to a traditional permanent fully amortizing financing automatically after month 48. Early prepayment is available even during the construction period and then steps down until a fully open prepay year 4 after CofO.

    Rate: 1-Month SOFR + 3.50%
    Term: 15 Years
    Amortization: Interest Only for First 4 Years, then 30 Year Amortization
    LTC: 61%
    LTV: 55%
    Guaranty: Full Recourse with Burn-Off to 20% at CofO

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    $33,800,000 Construction Loan for 83-Unit Multifamily Property with 50% Co-living Units; Los Angeles, CA

    May 3, 2023

    Transaction Description:

    George Smith Partners secured $33,800,000 of senior construction financing for the development of an 83-unit ground-up multifamily building in an infill Los Angeles location. The 83 units will be comprised of 50% conventional units and 50% co-living units. While the property is in an A+ location, many lenders were uncomfortable with co-living in general. GSP was not only able to find a lender that was comfortable with the product type but was also able to get to almost 70% of total project cost. The lender also gave the borrower credit for the entitled value of the land as opposed to their acquisition cost from the year prior. The land equity contributed a significant portion of the total equity required.

    The construction loan was priced at Prime + 0.75% and the loan term is 18 months plus one 6-month extension option.

    Rate: Prime + 0.75%
    Term: 24 Months with Two 6-Month Options to Extend
    LTC: 68%
    Stabilized LTV: 55%
    Guaranty: Recourse

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    $8,500,000 Construction Financing for 35-Unit Apartment Building; Los Angeles, CA

    April 26, 2023

    Transaction Description:

    George Smith Partners secured $8,500,000 of senior construction financing for the development of a 35-unit ground-up multifamily building in Los Angeles, California. GSP was sourcing financing when banks were getting increasingly conservative in their underwriting, with leverage falling and compensating deposits required. Given the strong track record of the developer, GSP identified a bank that was able to maximize the leverage with no deposits held at the bank. The Sponsor was also able to use land equity in the capital stack.

    The construction loan was priced at Prime + 1.25%. The loan term is 18 months plus one 6-month extension option.

    Rate: Prime +1.25%, with a Floor of 6.50%
    Term: 18 Months with One 6-month Option to Extend
    LTC: 65%
    Stabilized LTV: 60%
    Guaranty: Recourse

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    $25,590,000 Stretch Senior Construction Financing for a Community of 90 Modular, Build-for-Rent Homes; Asheville, NC

    March 22, 2023

    Transaction Description:

    George Smith Partners secured $25,590,000 of stretch senior financing for the construction for a community of 90 modular homes for rent in Asheville, NC. GSP quickly identified a debt fund that suited the client’s needs by arranging an in-person meeting to discuss the project. The Lender recognized the strength of the Asheville market.

    The modular homes will be constructed off-site and set onto finished lots over 36 months. The community features spacious floor plans and a common area for future residents. This is the first build-to-rent community for the client and we expect there to be many more.

    Rate: 3-Month SOFR + 675
    LTC: 75%
    Term: 36 Months with Two 3 Month Extensions
    Guaranty: Non-Recourse