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    Acquisition Bridge Loan for a Newly Constructed 10-Unit Multifamily Property in Florida

    April 4, 2024

    Transaction Description:

    George Smith Partners sourced an acquisition loan for a newly constructed 10-unit multifamily property in Florida. The borrower closed on the vacant property just after Certificate of Occupancy was received. Although the loan went into application several months ago, the seller was delayed in obtaining the C of O. Despite fluctuations in the capital markets, the lender held the fixed rate of 10.25%. The loan has a 9-month term with one 3-month extension option. A small interest reserve was structured to cover the initial payments while the property leases up.


    Rate: 10.25% fixed

    Term: 9 months with one 3 month extension

    Origination Fee: 1%

    Guaranty: Non-Recourse

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    $9,800,000 Construction Financing for a 36-Unit Ground up Multifamily Property in a Southwestern State

    March 14, 2024

    Transaction Description:

    George Smith Partners successfully arranged a non-recourse, stretch senior, construction loan of $9,800,000 for the ground up construction of a 36-unit mixed-used development in the submarket of a Southwestern State. GSP, through their expertise in multifamily development financing and strong relationships with a wide range of lenders, was able to negotiate favorable terms for their client including pari passu funding. The loan was priced at an 11.5% fixed rate with three, three-month extension options.

    Building upon the Sponsor’s local market knowledge, the GSP team effectively packaged and supported the client’s 70% LTC financing request for the project’s duration. Upon completion, the project is poised to become a standout addition to the city’s Art’s District.

    Rate: 11.5% fixed rate, full term interest only

    Term: 18 months with three (3) three (3)-month extension options

    LTC: 70%

    Guaranty: Non-Recourse

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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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    $9,850,000 Bridge Financing for an 86-Unit Multifamily Acquisition in Grand Prairie, Texas

    December 21, 2023

    Transaction Description:  

    George Smith Partners successfully placed a $9,850,000 bridge loan for the acquisition and renovation of an 86 unit, 1970 vintage residential community featuring two and three bedroom apartments in Grand Prairie, TX. GSP sourced a lender that was able to maximize proceeds at a fixed-rate rate while providing future capital expenditure funding for the Sponsor. The loan was sized to 66.4% Loan to As-Is Value and includes the full capital improvement and renovation budget. The sponsor intends on renovating approximately 75% of the units within the 3-year loan term.

    Rate: 8.75% Fixed

    Term: 3 Years, Two 12-month extensions

    Amortization: Full Term Interest-Only

    Loan-to-Value: 66.4% As-Is LTV

    Prepayment: 24 Months Minimum Interest Period

    Loan Fee: 1% Origination Fee, 1.00% Exit Fee

    Guaranty: Non-Recourse

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    Non-Recourse Bridge Loan for Acquisition of Vacant 10 Unit Multifamily Property | Fixed at 10.75% | No Prepay

    November 22, 2023

    Transaction Description:

    George Smith Partners arranged a 12-month bridge loan for the acquisition of a vacant 10-unit multifamily property. The Sponsor expected that the property would lease up quickly, so they requested a short-term bridge loan with no prepay. GSP was able to source a lender that provided proceeds of 72% of the purchase price. The non-recourse loan is fixed at 10.75% and can be paid off at any time with no penalty. Once the property is stabilized, the Sponsor expects to refinance into a perm loan. 

    LTV: 72% 

    Rate: 10.75% Fixed 

    Term: 12 months with two 3-month extension options 

    Guarantee: Non-Recourse 

    Prepayment: None 

    Origination Fee: 1.50%

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    Infill Land Financing for Apartment Building; Los Angeles, CA

    October 27, 2023

    Transaction Description:

    George Smith Partners secured 65% LTC financing on infill land in Los Angeles. The land currently has a vacant apartment building which will be demolished for future apartment construction. The financing provided liquidity for the Sponsor and is pre-payable at any time. GSP was able to identify a lending source that understood the market and demand for multifamily development in this location.

    Rate: 8.90% Fixed
    Term: 12 months with two 6-month extension options
    Amortization: Interest Only
    Origination Fee: 1.00%
    Exit Fee: None
    Prepayment: Open
    Guaranty: Non-Recourse

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    $4,000,000 Multifamily & STR Portfolio Cash-Out Refinance; Charleston, South Carolina

    September 13, 2023

    Transaction Description:

    George Smith Partners has successfully facilitated a recent cash-out refinance of $4,000,000 for our Sponsor’s multifamily portfolio. This financial arrangement was designed to suit two distinct multifamily properties nestled within the city of Charleston, South Carolina.

    The team collaborated with a local bank that demonstrated a keen understanding of these multifamily properties. The negotiations resulted in an arrangement where the lending institution allowed 70% of the appraised value of the Properties for a cash-out refinance. This mutually beneficial agreement showcased the confidence both parties had in the assets’ value and future prospects. The Lender showcased their capacity to offer flexible fixed-rate financing, granting the choice to adjust the fixed rate to market conditions in favor of the borrower throughout the loan’s duration without incurring any expenses.

    The Sponsor, represented by the GSP team, was relatively new to the Charleston market and operated from a non-local base, which presented a significant hurdle in the current real estate landscape. The properties were purchased outright with cash in late 2022 and mid-2023.


    Term: 5 Years
    Amortization: 6-Months IO
    Rate: 7.25%
    LTV: 70%

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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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    $29,000,000 Bridge Financing for a 95-Unit Multifamily Project; Bozeman, MT

    August 2, 2023

    Transaction Description:

    George Smith Partners (GSP) secured $29,000,000 of bridge financing proceeds for a multifamily project in Bozeman, MT. The project is a newly constructed multifamily property totaling 95 units across 2 buildings and is currently in lease-up. At loan application, only 1 of 2 buildings had received their Certificate of Occupancy and was less than 10% leased. The project also included a small commercial space that was unleased at loan application.

    Given GSP’s extensive experience in the Montana submarkets, coupled with the borrower’s track record, a total of 9 lender groups showed interest and participated in providing loan terms. GSP was able to overcome Bozeman’s small submarket challenges by identifying relevant comps and highlighting leasing velocity at the property. By the closing date, the property was over 35% leased.

    The new bridge loan proceeds were used to repay the more expensive construction loan and provide sufficient reserves to carry the project through lease up and permanent refinancing. The loan request of $29,000,000 represents an as-is loan-to-value of 70%.

    Rate: Floating at 1 Month CME Term SOFR + 3.65% (dropping to 3.50% at stabilization)
    Term: 2+1+1
    Amortization: Interest Only
    Minimum Interest: 6 months
    Guaranty: Non-Recourse

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    $190,000,000 Acquisition Financing for 7 Multifamily Properties Totaling over 1600 Units

    July 26, 2023

    Transaction Description:  

    George Smith Partners arranged 7 different loans over a 6-month period for a longtime sponsor. The Properties were acquired from multiple sellers. The loans are individual non-recourse loans (no cross-collateralization).

    All Terms Confidential

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    Permanent Financing for a 14-Unit Multifamily Property; Los Angeles, CA

    July 19, 2023

    Transaction Description:

    George Smith Partners closed a refinance loan on a 14-unit Los Angeles multifamily rental with a California-based credit union. The loan is fixed at 4.93% for 5 years, a rate that is at least 60 basis points lower than the rest of the market. The prepayment schedule is 5%, 4%, 3%, then open in the 4th year. This will give the borrower flexibility to refinance if interest rates decline. The loan did not require the borrower to maintain any deposits with the Lender.

    Rate: 4.93% Fixed for Five Years
    Term: 30 Years
    DCR: 1.25x
    Lender Fee: Par
    Prepayment: 5,4,3, open

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    $5,300,000 Programmatic Equity Financing for a 102-Unit Portfolio; Washington DC

    June 28, 2023

    Transaction Description:

    George Smith Partners has achieved a successful negotiation of a Programmatic Joint Venture Equity Structure amounting to $5,300,000. This arrangement will fund two affordable multifamily developments in The District of Columbia, involving the renovation of 25 existing units and the construction of 87 new ground-up units.

    In a climate of increasing interest rates, and with a considerable number of LP equity groups staying on the sidelines, the team and Sponsor faced challenges in finding an LP partner willing to invest in a single development with a satisfactory rate of return. Despite considering the option of utilizing wealthy family funds for a swift closing, the decision regarding the funding source remained unresolved.

    GSP successfully negotiated a programmatic equity arrangement that offers both investors enhanced returns over an extended duration. As a result, the sponsor secured a long-term equity provider for their forthcoming projects, while the equity provider gains the opportunity to access the sponsor’s extensive pipeline, enabling potential future funding returns.

    Term: 5 Years