Rate: 4.38% Fixed (T+ 1.45%)
Term: 10 Years
Amortization: 30 Years with 7 Years IO
George Smith Partners has secured $120,115,000 in permanent financing for a 526-unit multifamily property, the Da Vinci Apartments. The Property is a 98% occupied, institutional quality, 5 and 6-story residential complex located in Downtown Los Angeles. The loan is fixed for 10 years at 4.38% with interest-only payments for the first 7 years.
Despite Los Angeles’ COVID-based eviction and rent control issues, GSP was able to work with the Lender to underwrite the NOI to accomplish the targeted loan amount. GSP also facilitated an early rate lock to protect against changes in the interest rate prior to the loan’s closing.
$15,100,000 Cash-Out Refinance of a 5-Property Multifamily Portfolio at 3.40% – 70% LTV; Los Angeles, CA
April 11, 2022
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.
March 9, 2022
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
$6,650,000 Perm Financing for Single Family and Multifamily with ADU/JADU Portfolio; North Hollywood, CA
March 1, 2022
George Smith Partners secured three separate loans totaling $6,650,000 for the permanent financing of a portfolio of three properties/15 units in North Hollywood, CA. The Properties were acquired-entitled and developed by the Sponsor to include a combination of multifamily, single-family-detached with ADUs and JADUs. The Properties are located within proximity to each other and were in various stages of lease-up and stabilization at the time of the financing.
The recourse loan refinanced both equity and construction debt with perm financing with a total term of 10 years. The three separate loans represent 70% loan to stabilized value with a minimum 1.15:1.0 DSCR. The loan allows for open prepayment with yield maintenance.
The Sponsor’s business plan provides for much needed housing and increased density developed under the AB-68 Land Use Act for Accessory Dwelling Units passed by Governor Newsom and the State of California in October 2019. GSP was able to secure a lender that was comfortable with the collateral which required varying ownership structures including a land trust as required for JADUs.
January 12, 2022
George Smith Partners successfully placed construction-to-perm financing of $6,250,000 for the development of a 19-unit multifamily community in West Los Angeles, CA. The 4-story building will provide 1, 2 and 3-bedroom units in a supply-constrained submarket. The recourse loan provides for two-years of interest-only financing with a 6-month extension that converts to a perm loan with a combined term of 10 years. The starting rate is fixed for 7 years then amortizing. The loan represents 60% of stabilized value and 70% of cost and allows for open prepayment based on a prepayment fee of 2%,2%,1%,1% in years 1 to 4. The Project will be Type-V construction consisting of 4-stories, a rear 750 SF community courtyard, partial ground level and partial subterranean parking. Unit mix includes studio, one and two-bedroom units including two low-income units. All units include covered patios however non-studio units include larger than average outdoor living terraces that range from 130 to 193 SF. Community amenities include a rear courtyard with firepit lounge and BBQ grill. The units average 654 SF in size. The Project represents the Client’s second multifamily construction project. GSP was able to assist in bringing in a qualified general contractor and get the Lender comfortable with the Borrower’s ability to execute despite their limited development track record.
Rate: 3.6% Fixed 7-years
Term: 10 years
Amortization: Interest-Only Years 1-2 then 30-year amortization
Extensions: One 6-Month Option
Loan Fee: 1%
- Advisors: Alina Mardesich
$17,820,000 Cash Out Financing Fixed at 3.30% Interest-Only for Stabilized Multifamily Property; Phoenix, AZ
July 28, 2021
George Smith Partners secured $17,820,000 of permanent financing for the refinance of a 164-unit multifamily complex located in Mesa, AZ. The Property, which was originally built in 1979, recently completed a renovation project that included updating unit interiors and exterior amenities. The unit mix is comprised of 1-bedrooms (49%) and 2-bedrooms (51%). Amenities include a pool, an open pet area, and an on-site laundry facility. GSP was able to a secure a 7-year fixed rate of 3.30%. The financing is interest-only for the entire term and non-recourse to the Sponsor. Refinancing provided the Sponsor with a much lower rate and a significant return of equity. The loan is sized to 60% LTV and a 1.35x DCR.
April 7, 2021
George Smith Partners secured senior permanent financing for a stabilized multifamily property located in the Pico Robertson neighborhood of Los Angeles, CA. The non-recourse debt was utilized to complete the acquisition of the multifamily asset. The loan was structured with a 5-year term and interest only payments for the initial 3-years followed by a 30-year amortization schedule. The loan was collateralized by a Class B, three story, 16-Unit multifamily property. The Subject was 100% leased at closing but only 78% physically occupied.
GSP selected a bank lender that was able to underwrite the income from three newly executed leases with no seasoning. The Lender funded the full proceeds with signed leases and rent checks although the tenants had yet to take possession. The Lender executed on excellent terms while closing on a firm acquisition deadline of 45 days. At application, the Lender offered an early rate lock to remove any pricing risk. GSP worked with the Lender to navigate the appraisal assumptions surrounding concessions and market rent stemming from various COVID risks while maximizing proceeds.