Rate: 3.875% Fixed
Term: 10 years
Amortization: 30 Years
Loan-to-Value: 70%
Guarantee: Full Recourse
Prepayment: Open to prepayment at any time
Lender Fee: 1.0% Origination Fee
Transaction Description:
George Smith Partners secured $11,000,000 of permanent financing for the refinance of a single-tenant medical office building located in Chula Vista, CA. The Sponsor purchased the 23,000 square foot building completely vacant in 2018. Shortly after acquisition, they secured a lease with a local medical user for the entire space. The transition of use from traditional retail to medical office required a large capital improvement budget that the Sponsor wanted to recoup through permanent loan proceeds.
The refinance allowed the Sponsor to fully recapitalize their initial equity investment after completing their business plan. The strength of the Tenant in the market, long-term lease (15 years), and a healthy rental rate all contributed in getting the capital provider comfortable with providing funds in excess of costs.
The 10-year financing carries a fixed interest rate of 3.875% for the entire term and amortizes over 30 years. The financing, sized to 70% LTV, provides two years of interest only payments and is open to prepayment at any time without penalty. The three general partners in the deal are providing recourse which is split evenly between each of them.
Advisors
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Steve Bram
Managing Director & Principal / GSP Co-Founder
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David R. Pascale, Jr.
Senior Vice President
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Allison Higgins
Senior Vice President
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Nick Rogers
Vice President
Related Financings
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Construction Loan for the Redevelopment of an 8-Unit/26 Bedroom Student Housing Community in Los Angeles, California
April 11, 2024
Transaction Description:
George Smith Partners has sourced a construction loan for the redevelopment/repositioning of a proposed 8-unit/26-bedroom student housing community in Los Angeles just two blocks away from the University of Southern California.
The Sponsor is one of the premier private student housing operators in the market with a track record of delivering best-in-class off-campus housing. The Sponsor’s portfolio includes 60 buildings/600+ bedrooms located within the Project’s competitive neighborhood. Despite fluctuations in the capital markets, GSP secured attractive financing for the Sponsor to commence and execute their business plan.
Proceeds: $5.65M
Rate: Prime +1%
Term: 18 months + one six-month extension
Origination Fee: 2.5%
Guaranty: Non-Recourse
- Advisors: Evan Kinne Ed Steffelin Nick Shapiro
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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
- Advisors: Matthew Kirisits
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$23,500,000 Construction Financing for a 136,000 SF Industrial Park in a Southwestern State
March 21, 2024
Transaction Description:
George Smith Partners successfully arranged $23,500,000 in construction financing for the development of a 136,000 SF industrial park in a Southwestern State. The development includes two free standing buildings that can be programmed for manufacturing, distribution, or other industrial use, and is ideal for owner-users or single-user tenants.
The capitalization included land that had been owned free and clear for over two decades and contributed to the deal as Sponsor equity. GSP identified a lender that understood the land contribution and spec development elements of the deal. As well as the unique positioning of the two buildings as an underserved, small-scale, free-standing product in the State’s industrial market.
Terms: Not Disclosed
- Advisors: Brandon Asherian Grant Pugatch
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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
- Advisors: Evan Kinne Ed Steffelin Jake Sachse Nick Shapiro
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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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$6,160,000 Senior Construction Loan for a Luxury Single Family Residence in Northern California
February 22, 2024
Transaction Description
George Smith Partners closed a $6,160,000 senior loan for the construction of a luxury single family residence in Northern California. The loan is fixed at a rate of 10.5% for 18 months with full term interest only payments. The Sponsor is the U.S. affiliate of a Brazil-based construction and design company. Because of the Sponsor’s extensive experience constructing and selling luxury homes in the market, the lender was able to get comfortable with the international sponsorship. The lender provided proceeds of 70% of the appraised value of the completed project.
Rate: 10.5% fixed rate, full term interest only
Term: 18 months with one 6 month extension option
Origination fee: 1.5%
LTV: 70%
- Advisors: Matthew Kirisits