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Perm

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    $14,430,000 Permanent Financing for a Newly Developed Student Housing Property; Memphis, TN

    January 25, 2023

    Transaction Description:

    George Smith Partners secured a $14,430,000 permanent loan for an 85-unit, 208-bed, student housing property near the University of Memphis. The Sponsor was able to lock rate at application and secured the 5.41% fixed rate for seven years. In a rising rate environment, the ability to lock rate at application gave the Sponsor confidence in the terms of the loan and provided a clear path to closing. Prior to the refinance, the Property was encumbered by the construction loan having been recently completed in 2021. The Property was extremely successful in its first year of operations, having leased up to over 90% occupancy. During GSP’s marketing process, the property was significantly pre-leased for the upcoming school year providing lenders with the assurance of forward cash flows and clarity in their underwriting process. GSP contacted a variety of lenders including life insurance companies, CMBS lenders, and banks to provide the client with a wide variety of avenues to capture the most competitive lending terms in the current economic environment.

    Rate: 5.41% (7-Year Treasury + 2.40%)
    Term: 7 Years
    Origination Fee: Par
    LTV: 62.5%
    Prepayment: Yield Maintenance Years 2-4, 2%, 1%, 0%
    Guaranty: Non-Recourse

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    Permanent Multifamily Financing; Los Angeles, CA

    January 11, 2023

    Transaction Description:

    George Smith Partners arranged $3,800,000 in permanent financing for the refinance of a stabilized 39-unit multifamily property in Los Angeles, California. The Sponsor locked rate in early summer of 2022 during a time of rapidly increasing interest rates. Due to some unforeseen events, the transaction got delayed multiple times. GSP was able to get the rate lock extended multiple times due to our relationship with the Capital Provider. The rate lock was extended without a single increase to the rate or any additional fees. The loan includes a flexible prepayment penalty structure that allows the Sponsor plenty of options during the next 5 years as well as over $1,500,000 in cash-out proceeds.

    Rate: 4.25%
    Term: 5 Years Fixed
    Amortization: 30 Years
    Prepayment Penalty: 3/2/1, Then Open
    Deposits Required: None
    Guaranty: Non-Recourse

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    $3,830,000 Refinance of a 11-Unit Multifamily Property; Los Angeles, CA

    January 5, 2023

    Transaction Description:

    George Smith Partners arranged $3,830,000 in permanent financing on a newly stabilized 11-unit multifamily property located in Austin, TX. The loan is fixed at a rate of 6.00% for 10 years and a 3-3-3-2-1 prepayment structure. Although some lenders were hesitant to provide competitive permanent financing terms on a former condo multifamily property with less than a year of operating history, GSP was able to source competitive financing ahead of the rising interest rate environment with flexible prepayment. Thanks to our long-standing relationship with this repeat lending relationship, GSP was able to meet the Sponsor’s deadline and close this transaction within 43 days from signing the term sheet.

    Rate: 3.50%
    Term: 10 Years
    LTV: 70%
    Prepayment: 5, 4, 3, 2, 1%

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    Perm Financing for a Multifamily Property; Houston, Texas

    June 29, 2022

    Transaction Description:

    George Smith Partners secured permanent financing for an eight-unit multifamily property located in Houston, Texas. The loan is fixed at a rate of 4.00% and locked in for 7 years. The deal went into application during the Fed run-up in rates and the rate was never locked. However, due to GSP’s relationship with the Lender, we were able to hold the rate and term down substantially. The financing does not require any deposit relationship with the bank and did not require any funds to be held back for reserves. The Lender’s processing/application fee was $2,000 all in.

    Rate: 4.00%, Fixed for 7 Years
    Term: 30 Years
    Amortization: 30 Years
    LTV: 70%
    Prepayment: 5, 4, 3, 2, 1%
    Depository Relationship: None Required

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    $6,100,000 Perm Financing for an Unanchored Retail Property; Bakersfield, CA

    June 22, 2022

    Transaction Description:

    George Smith Partners successfully closed a loan at 60% loan-to-value for an 84% occupied, newly built, and stabilized retail center in Bakersfield, CA. GSP located a lender that was able to lock the rate of 4.125% at application to avoid the rate volatility in the market. Many lenders were not comfortable quoting the deal because of the lack of operating history. GSP was able to locate a lender that was comfortable with the lack of history, with a 6-month debt service reserve held back at closing, to ensure that the tenants continue to pay rent. The reserve is released after 6 months of full rent collection.

    Rate: 4.13%
    Term: 7 years
    LTV: 70%
    Amortization: 1 Year IO, then 25 Year Amortization
    Prepayment: None
    Fee: None
    Guaranty: Full Recourse

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    Cash-Out Refinance with LifeCo for Unflagged Boutique Hotel; Tucson, AZ

    June 1, 2022

    Transaction Description:

    George Smith Partners secured permanent financing for an unflagged, 90-key, boutique art hotel in Tucson, AZ. The Sponsor acquired the Property in 2017, and completed a full renovation and rebrand in 2018, primarily with cash. The Hotel performed extremely well prior to the pandemic. While revenue and NOI declined, along with most hospitality assets during that time, the Property has since recovered to and exceeded pre-pandemic levels. Despite the Property being unflagged and located outside downtown Tucson, GSP was able to leverage its strong lender relationships to source CMBS and Life Insurance Company quotes. The Sponsor ultimately chose a LifeCo lender who offered a combination of low rate, longer amortization, prepayment flexibility, and potential to increase proceeds during the loan term.

    Rate: 4.59% Fixed for 5 Years
    Term: 15 Years (5+5+5)
    Amortization: 27 Years
    LTV: <40%
    Guaranty: Partial Recourse

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    $15,100,000 Cash-Out Refinance of a 5-Property Multifamily Portfolio at 3.40% – 70% LTV; Los Angeles, CA

    April 11, 2022

    Transaction Description:

    George Smith Partners arranged $15,100,000 in permanent financing for the refinance of a 5-property multifamily portfolio located in Los Angeles, CA. Using GSP’s vast network of relationships, we were able to source and quickly lock fixed rate financing in a market that is seeing rising interest rates. The Sponsor also wanted to pull cash out of their existing multifamily portfolio to use as equity towards purchasing new properties. The Sponsor had recently completed exterior and interior renovations including common area upgrades to all five properties. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 30-year term, with the first 5 years being fixed at a rate of 3.40%. The loan represents 70% loan to value with a minimum 1.20 DSCR. The flexible stepdown prepayment structure is equal to 5,4,3,2,1. The cash-out loan allows the Sponsor to use more equity towards growing their multifamily portfolio. Thanks to GSP’s long-standing relationship with this bank lender, we were able to meet the Sponsors deadline and close this transaction within 35 days from signing the term sheet.

    Rate: 3.40%
    Term: 30 years term, fixed for first 5 years
    LTV: 60%
    DCR: 1.20

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    $3,870,000 Cash-Out Permanent Financing Loan for 44-Unit, Multifamily Property; Los Angeles, CA

    March 16, 2022

    Transaction Description:

    George Smith Partners arranged $3,870,000 in cash-out permanent financing for the refinance of a 44-unit multifamily property located in Los Angeles, CA. GSP was able to time the refinance of the more expensive lender and lock the rate before the interest rate market started to move upwards. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 10-year term, and the first 7 years being fixed at an incredibly low rate. The flexible prepayment structure is equal to 2% for the first 2 years, 1% for years 3 and 4, and 0% thereafter. The loan structure allows the Sponsor to refinance out of an expensive loan with a fixed rate of 3.15%, while also receiving cash out. The Sponsor is using cash-out proceeds to continue their business plan of purchasing and renovating additional properties.

    Rate: 3.15% (Fixed for 7 Years)
    Term: 30 Years
    LTV: 60%
    DCR: 1.20

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    $26,560,000 Permanent Financing for a 284-Unit Multifamily Asset; Rexburg, ID

    March 9, 2022

    Transaction Description:

    George Smith Partners secured $26,560,000 in permanent financing for a 284-unit multifamily project located less than a mile from Brigham Young University-Idaho (BYU-I), one of the country’s fastest growing universities and Idaho’s largest university, in Rexburg, Idaho. The apartment complex features novel, modern 2-bedroom apartment units with boutique amenities including a racquetball court, 24/7 state-of-the-art gym, outdoor grill and fire pit lounge area, dog park, and clubhouse with conference rooms. The community was developed in phases, so the refinance retired existing construction and bridge debt, provided significant cash-out to the Sponsor, and reduced their previous interest rates considerably.

    The Rexburg multifamily submarket is undergoing a colossal renaissance, seeing over $1B of new investments and a population growth of over 62% over the last decade. The Sponsor, a local developer with significant knowledge and experience within the Rexburg market, recognized the need for high quality product in a supply constrained market. GSP was able to leverage market interest to secure the most competitive terms available by focusing on the desirable location as well as the Sponsor’s track record and familiarity with the high-growth market. The loan carried a 35-year term priced at a 2.91% fixed-rate and 80% LTV.

    Rate: 2.91% Fixed-Rate
    Term: 35 Years
    LTV: 80%

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    $4,800,000 Permanent Acquisition Financing of Industrial Park; Pflugerville, TX

    February 16, 2022

    Transaction Description:

    George Smith Partners arranged $4,800,000 in financing for the acquisition of a six-building, fully occupied industrial park in Pflugerville, Texas. The Sponsor, a repeat client, was selling another property in which the existing financing had a prepayment penalty. GSP leveraged its strong relationship with the lender of the Property being sold to successfully negotiate a reduction of the prepayment penalty by providing this Lender the opportunity to finance the purchase of the industrial park. The Lender offered a permanent, recourse loan at 3.68% fixed for the first five years based on the original property’s existing loan from 2019. The new loan term is ten years with a 30-year amortization.

    Rate: 3.68% Fixed for first five years
    Term: 10 Years
    Amortization: 30 Years
    LTC: 48%
    Guaranty: Recourse

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    $16,100,000 Cash-Out Permanent Financing for a Theater Anchored Shopping Center; Dardenne Prairie, MO

    November 29, 2021

    Transaction Description:

    George Smith Partners arranged the cash-out permanent refinance of a 153,726 SF grocery-anchored retail community center in Dardenne Prairie, MO, about 30 miles west of St. Louis. The Subject Property is anchored by Schnucks and Marcus Theater and is also shadow anchored by Target, which is under separate ownership. The loan is sized to 62% LTV, fixed for 5 years with 20 years amortization.

    The Sponsor approached GSP to arrange a non-CMBS loan resulting in $4,000,000 cash-out. The proceeds were used to buy-out his partners and lower the debt service from their previous loan. The theater component, along with a decreased appetite for retail lending due to market conditions made it difficult for capital providers to get comfortable with the asset type and cash-out. GSP identified a lender who was willing to provide a higher loan to value and competitive terms that maximize the Sponsor’s cash-out.

    Rate: 3.95%
    Term: 5 year fixed rate
    Amortization: 20 Years
    Loan to Value: 62%
    Prepayment: 2,1,0
    Guaranty: Full Recourse

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    $3,500,000 10-Year Full Term Interest-Only Permanent Financing, 40,000 SF Industrial Business Park; Murrieta, CA

    November 3, 2021

    Transaction Description:

    George Smith Partners secured $3,500,000 in non-recourse debt to refinance a Southern California industrial business park. The Property is a 40,000 square foot, 100% occupied, industrial/flex building, majority occupied by automotive tenants. The financing takes out the existing debt, distributes capital for a significant roof repair, and redistributes equity to the Sponsor. The loan was underwritten to 60% LTV. The 10-year full term interest structure maximizes cash flow for the Sponsor. The fixed-rate loan priced at 1.80% over the 10-year SWAP.

    Rate: 3.42% (1.80% over the 10 Year SWAP)
    Term: 10 Years
    Amortization: Full-term Interest-Only
    Loan to Value: 60%
    Guaranty: Non-recourse
    Lender Fee: Par
    Prepayment: Defeasance