$20,000,000 Non-Recourse 10-year loan on Specialty Storage

Rate: 3.54%
Term: 10 Years
Amortization: 5 years interest Only
LTV: 65%
DSCR: 1.25%
Loan Fee: Par

Transaction Description:

George Smith Partners placed a $20,000,000 refinance for a 30-year-old specialty storage facility in California. The high security, temperature and humidity-controlled facility is used for specialty uses, and other high value items. The COVID-19 pandemic made the Sponsor’s request more challenging as it consisted of non-recourse financing for a specialty asset. George Smith Partners reached out to several dozen Capital Providers to find a relationship lender that would meet the Sponsor’s needs. The Property has performed well historically and continues to perform very well during the COVID-19 pandemic.

Advisors

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    $21,700,000 Construction-to-Perm Loan for Self-Storage Project; Santa Clarita Valley, CA

    May 20, 2020

    Transaction Description:
    George Smith Partners successfully secured a high leverage $21,700,000 non-recourse, Construction-to-Perm loan to develop a six-building, 966-unit, climate controlled, Class-A self-storage facility near Stevenson Ranch in the Santa Clarita Valley, California.

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    GSP was able to source an investor from its pool of strong relationships who provided the equity. GSP focused on the market necessity for storage units in the desirable and growing community of Santa Clarita Valley, and successfully negotiated an agreement with Public Storage to operate the facility. GSP identified a capital provider to not only extend the financing commitment multiple times, but also to execute a structured, non-recourse, low-rate loan with the same terms agreed upon prior to Covid-19.

    Rate: 4.75% Fixed
    Term: 1 + 5 (12 Months Construction, then 5 Years Perm)
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    Guaranty: Completion Guarantee

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    Trophy Gas Station; 3.1% Interest Rate for 10 Years; Orange County, CA

    April 22, 2020

    George Smith Partners secured $5,000,000 of senior financing for a gas station located at a premier Orange County intersection. The loan is fixed at 3.10% for the entirety of the 10-year term. This is one of the lowest fixed rate financings ever placed by GSP even though gas stations are typically priced with an interest rate premium.

    The asset class presented a unique challenge when marketing the Project. GSP was able to arrange the loan with a money center bank by highlighting the strong cash flow, extensive experience in management and operations, and irreplaceable site location. The Lender did not require a depository relationship from the Sponsor, even though she was not an existing client.

    The Sponsor showed concerns about having a large loan balance towards the end of the loan term, believing that the continuing growth of electric vehicles could diminish the value of gas stations in the future. GSP negotiated to allow the Sponsor to pay down up to 15% of the outstanding loan balance every year. The amortization was also reduced to 20 years to accelerate the principal paydown.

    Rate: 3.10% Interest Rate
    Term: 10 Year Term
    LTV: 40% LTV
    Amortization: 20 Years
    Lender Fee: Par
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    $4,500,000 Non-Recourse Self Storage Adaptive Reuse Construction Financing Fixed at 4.75%; Orlando, FL

    March 25, 2020

    George Smith Partners placed $4,500,000 in non-recourse construction financing for the adaptive reuse of a big box retail furniture store to convert to a 1,250-unit state of the art self-storage facility. The Property is located in Orlando, Florida, within a Qualified Opportunity Zone (QOZ) and was capitalized with a QOZ equity partner. Deal requirements included a non-recourse bank execution and best possible rate given the low leverage ask resulting from the QOZ equity partner’s significant investment in the Project.

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    $23,500,000 Construction Loan Take-Out of the 30-Acre FBO and Airplane Hangars Adjacent to the Van Nuys Airport

    February 12, 2020

    Transaction Description:

    George Smith Partners placed a $23,500,000 construction loan take-out for the 30-acre development of the piston driven airplane hangars and FBO (Fixed Base Operations) adjacent to the Van Nuys Airport. Although not yet completed and four or five months from the final certificate of occupancy, our perm lender agreed to fund without the requirement of a hold-back due to the ample cash flow in place at the time of the loan funding.

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    Fee: 25 Basis Points

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    Acquisition Financing for Specialty Use Production Space at 66% LTV in Los Angeles, CA

    May 29, 2019

    Transaction Description:

    George Smith Partners secured a 66% LTV acquisition loan for a vacant theatre space in Los Angeles. The loan provides 66% of the purchase price at a floating rate of Prime + 0.25%. The Sponsor plans to convert the theatre to a production studio/event space.

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