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Financings

Recent Financings

  • Permanent Financing for Acquisition of 12-Unit Multifamily Property; Los Angeles, CA

    October 26, 2022

    Transaction Description:

    George Smith Partners arranged $2,250,000 in permanent financing for the acquisition of a stabilized 12-unit multifamily property in Los Angeles, California. The Sponsor acquired the Property as interest rates were soaring and as the environment was changing drastically with the Fed raising rates. GSP identified a Capital Provider who allowed an early rate lock, required no holdbacks of any kind, no deposits to be held at their branch, and provided an extremely flexible prepayment penalty structure. This allows the Sponsor plenty of options during the next 5 years at an aggressive rate.

    Rate: 4.34%
    Term: 5 Years Fixed
    Amortization: 30 Years
    Prepayment Penalty: None
    Reserve Account: None
    Deposits Required: None

  • $14,400,000 Land Acquisition Financing Arrangement for a Future Build-for-Rent Project; Austin, TX

    September 14, 2022

    Transaction Description:

    George Smith Partners arranged $14,400,000 of non-recourse land acquisition financing in Austin, TX. The land will eventually be home to 368 Build-for-Rent homes. GSP was able to negotiate accretive terms for the Sponsor and their Limited Partner within a two-month timeframe from marketing to closing. Once the project becomes stabilized, it will enrich the surrounding Austin area.

    LTC: 50%
    Index: PRIME
    Spread: 1.25% (Floor of 6.00%)
    Term: 12 Months
    Extension: One 6-Month
    Guaranty: Non-Recourse

  • Bridge Financing for Office/Industrial Asset; Los Angeles, CA

    September 8, 2022

    Transaction Description:

    George Smith Partners arranged $3,600,000 in bridge financing of a 30,000 SF office/industrial Property located in Downtown Los Angeles. When the Sponsor engaged GSP, the Sponsor was in the midst of repositioning the Asset from a multi-tenant investment property into a full owner-user use. Because the previous lender did not allow for the reposition, GSP quickly arranged a multi-phase refinance process.

    The first phase was to take out the existing Lender by securing a $3,600,000 non-recourse bridge loan in just 7 days to avoid a technical default with the previous lender. This bridge loan was secured at 6.50% interest only on a two-year term, and a 1.00% origination fee. In today’s market, bridge loans of this nature usually start at 8.00% -10.00% interest rates with more expensive origination fees, but GSP was able to leverage its relationships to secure a more affordable option for their client. The loan has no prepayment penalty or exit fee.

    The second phase of this financing that is set to close in 60-90 days will be a long-term SBA loan which will net the Borrower over $5,000,000 of cash-out at a below market rate with 3 years of interest only on a 10 year term. GSP was able to handle the Borrower’s financing needs smoothly and quickly, allowing the Borrower to focus on expanding their business and take over their asset as an owner-user.

    Rate: 6.50% Fixed, Interest Only
    Term: 24 Months
    LTV: 55%
    Prepayment: No Prepayment
    Closing Timeline: 7 Calendar Days

  • Bridge Financing for Two Retail Properties; Hollywood, CA

    August 31, 2022

    Transaction Description:

    George Smith Partners successfully placed a $3,245,000 bridge loan fixed at 5.00% for two years. The loan will have an initial funding of $2,400,000 with the remainder distributed in 6 months’ time to accommodate funding structures for the Borrower’s needs. The Collateral is two adjacent commercial properties located in Hollywood, CA. One building is completely vacant and the other is a dated laundromat. The proceeds will cover renovation and leasing costs allowing the vacant building to stabilize, then provide additional proceeds to re-tenant the laundromat once the other building is cash flowing. The initial term sheet was structured at Prime plus a spread of 0.50%. When interest rates spiked during the closing process, GSP negotiated a fixed rate of 5.00%. GSP sourced a lender able to provide cash-out financing, limited recourse that burns off at full stabilization and fix their interest rate for the life of the loan.

    Rate: 5.00% Fixed
    Term: 2 Years
    Amortization: Interest Only
    LTV: 55%
    Prepayment: Open
    Guaranty: 50% – Burns off at DCR Hurdle
    Lender Fee: 0.50%

  • Refinance for a 2,738 SF Retail Building; Echo Park, CA

    August 17, 2022

    Transaction Description:

    George Smith Partners successfully advised on the refinance of a 2,738 SF high-street retail building located in Los Angeles, CA. The senior loan proceeds totaled $2,500,000 of non-recourse financing, which is approximately 70% loan-to-value. Due to the strategic advising of GSP, the Sponsor was able to obtain a fixed rate loan despite the building being 100% vacant.

    The Sponsor achieved a fully executed lease from a cannabis use tenant however, the prior mortgage did not permit cannabis use. GSP identified a cannabis-friendly lender that could close in accordance with the Sponsor’s business plan. Additionally, the Property was encumbered by a loan that included neighboring parcels as collateral. The new loan allowed the Sponsor to release the property from the prior mortgage and capitalize on the newly signed lease.

    Rate: 7.75%
    Term: 6 Months
    LTV: 70%

  • $6,850,000 Multifamily, Cash-Out Refinance; Los Angeles, CA

    August 10, 2022

    Transaction Description:

    George Smith Partners secured $6,850,000 for the refinance of a stabilized 58-unit Los Angeles apartment building. The loan is fixed at 4.15% for five years and has full-term interest-only payments. The Lender offered a 60-day rate lock, which provided a great benefit to the Borrower because interest rates increased while the loan was in application. A fast-paced closing process was required to keep the rate locked at 4.15%. GSP ensured that all stakeholders adhered to the timeline and that the loan successfully closed on the required date. There were no changes to the term sheet.

    Rate: 4.15% Fixed for 5 years; 30-Day Average SOFR + 2.35% Thereafter
    Term: 30 years
    Prepayment Penalty: 3, 1, 1, 1%
    LTV: 55%
    DCR: 1.20x
    Origination Fees: Par

  • $9,907,500 Financing for Beneficial Treatment Center; San Francisco, CA

    July 27, 2022

    Transaction Description:

    George Smith Partners successfully arranged a $9,907,500 loan for a very special project in San Francisco that provides huge benefits to the City and the Community. Utilizing our relationship with a community development lender, GSP was able to secure a 3.5% interest rate, 10 year loan, for a drug-free rehab facility in the South of Market (SoMa) area of San Francisco. The Facility aims to transform the lives of the surrounding community with help from the City. The Project was a vacant hotel with shared bathrooms, bordering some of the roughest areas of San Francisco. Most lenders passed on the project, but because of GSP’s experience with SRO properties, we were able to negotiate a below market rate for 10 years to enable the Project to move forward.

    The loan allowed for the rehab and redevelopment of an old SRO (Single Room Occupancy) tourist hotel with shared baths into the updated 80 room facility, which included new private bathrooms in each unit. It is great to not only successfully close a difficult loan, but to see the way the Sponsor was able to transform lives and solve community challenges.

    The Project will house people who are struggling with substance use from the streets to a safe place indoors. They can access clean bathrooms, showers, food, and a place to rest. Afterwards, the staff can help participants connect with medical care, mental health, substance use, and housing services. The Center was designed to improve safety for both participants and neighbors by creating a safe place for people experiencing a drug related crisis.

    Rate: 3.5%
    Amortization: 30 Year
    Term: 10 Years
    LTV: 80%

  • $10,000,000 Permanent Financing for Two Mixed Use Properties; Hollywood, CA

    July 13, 2022

    Transaction Description:

    George Smith Partners successfully placed a $10,000,000 loan with a 5-year fixed interest rate for two mixed-use properties located in Hollywood, CA. The ground floor retail for both properties has short-term roll and is in need of renovation. The financing provides significant cash-out, which the Sponsor will use to improve the Properties and to re-tenant the buildings with new, long-term, market rate leases. GSP sourced a lender that was able to provide cash-out financing, limited recourse that burns off at full stabilization and lock the rate at application – critical in this current volatile interest rate environment.

    Rate: 5.25% Fixed
    Term: 5 Years
    Amortization: 3 Years IO, 27 Year Amortization Thereafter
    LTV: 65%
    Prepayment: 5, 4, 3, 1, 1%
    Guaranty: 25%, Burning Off at Full Stabilization
    Lender Fee: None

  • CO-GP Joint Venture for a 207-Unit Multifamily Ground-Up Construction Project; Denver, CO

    July 6, 2022

    Transaction Description:

    George Smith Partners successfully advised our client to create a $2,520,000 Co-General Partner Joint Venture for a 207-unit multifamily ground-up, modular construction project in Denver, Colorado. The relationship created by GSP combines an investment team with a strong financial institutional backing with a sponsorship team of well-established development experts, into a general partnership team taking on a project in one of the fastest-growing markets in the country.

    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, playgrounds, sports courts, 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. The Project will be constructed modularly, thereby saving on costs and time. Modular projects can be developed in half the time as traditional construction, with approximately 60% – 90% of construction performed inside a factory while site work is simultaneously completed.

    The investment was paired with a bridge loan to close on the land, complete the working drawings and complete all the pre-development work. The Project is estimated to break ground in Q1 of 2023. To close, GSP will assist in obtaining a construction loan and LP Equity.

    Terms Confidential 

  • 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

  • $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

  • Perm Loan Debt for Two Multifamily Communities; San Diego, CA

    June 15, 2022

    Transaction Description:

    George Smith Partners secured permanent financing for two newly renovated/repositioned Class C apartment communities in San Diego. Two separate loans were originated for the same Sponsor for the 14-unit and 5-unit multifamily communities.

    The Properties were in the process of being completed and leased when the Borrower went under application with a bank. Despite the longer than normal application process and rising interest rate environment, GSP was able to get the bank to extend the rate lock and obtain a favorable coupon.

    Rate: 3.30% Fixed for 7 Years, Floating Thereafter at S+2.25%
    Term: 30 Years
    Amortization: 3 Years Interest-Only
    LTV: 70%
    DSCR: 1.20x
    LTC: 85%
    Guaranty: Non-Recourse