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$20,675,000 Post-Closing Acquisition Financing for an Industrial Asset; Los Angeles, CA

All Terms Confidential

Transaction Description:

George Smith Partners arranged $20,675,000 in post-closing financing collateralized by an 185K square foot infill flex/R&D industrial asset located in Los Angeles, CA. The recapitalization repatriated equity and provided future funding for the renovation of the Property.

The asset provides optionality for multiple upside scenarios such as sound stage and creative office use. The business plan is to renovate the Property and cater to growing demand from the many media, entertainment and technology tenants in the Los Angeles market.

Amidst a time of market volatility and economic uncertainty, George Smith Partners was able to identify a capital source that understood both the value of the asset and the ability of the Sponsor to execute on the intended business plan.


Related Financings

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    June 2, 2021

    Transaction Description:

    George Smith Partners successfully arranged bridge acquisition financing for a single-tenant industrial building in Wilmington, CA. The Property is 3,950 SF on an approximate 8,640 SF parcel. The previous owner occupied the Property, and the building is now vacant. GSP secured a 12-month, non-recourse bridge loan at 7.90% fixed with interest only payments and no prepayment penalty. This will provide the Sponsor time to lease the Property and season it for permanent financing. The financing closed within two weeks of term sheet issuance.

    Rate: 7.90% Fixed
    Term: 12 Months, with Extension Options
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    LTP: 57%
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    Guaranty: None

  • $1,200,000 Permanent Refinance on Multi-Tenant Industrial Building for Sponsor with Discharged Bankruptcy; Sun Valley, CA

    May 26, 2021

    Transaction Description:

    George Smith Partners successfully arranged a $1,200,000 permanent refinance for a fully occupied, eight-unit industrial building in the Sun Valley neighborhood of northern Los Angeles, CA. The Sponsor acquired the fully entitled site in 2015 and completed construction in 2016. The Property consists of two buildings totaling 8,084 SF on a 20,452 SF parcel.

    The Sponsor had a Chapter 13 bankruptcy due to the impacts of the Great Recession. Having worked diligently to pay off creditors, the bankruptcy was ultimately discharged in 2017. At the same time, the Sponsor’s real estate portfolio grew substantially despite very limited access to capital sources. GSP was engaged in hopes of capitalizing on the low interest rate environment despite the bankruptcy being on record.

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    Rate: 4.90% Fixed; Resets after Year 5
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    LTV: 58%
    Guaranty: Recourse

  • $19,550,000 Non-Recourse Cold Storage Construction Loan to 81% of Cost; Secondary Market

    April 28, 2021

    Transaction Description:

    George Smith Partners arranged $19,550,000 of senior construction financing for a ground-up cold storage facility located in Jurupa Valley, CA. The 125,000 square foot facility will serve as the headquarters for West Coast Cold Storage, a “for rent” cold storage provider focused on providing both refrigerated and frozen space to their Southern California customers. Existing cold storage facilities nationwide have an average age of over 40 years, demonstrating the need for new development within the space. With the sudden increase in online grocery orders and delivery, demand for well-located cold storage space has spiked. This flagship building will feature increased energy efficiencies and provide a variety of racking configurations to accommodate customer needs.

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    Rate: 9.25%
    LTC: 81%
    Origination Fee: 0.50%
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  • $2,450,000 High-Leverage SBA Acquisition Financing for Office Property; North Hollywood, CA

    April 14, 2021

    Transaction Description:

    George Smith Partners arranged $2,450,000 in SBA Owner-User Acquisition (90% Loan-to-Purchase Price) financing for an office/industrial flex property located in North Hollywood, CA. The Sponsor approached GSP to assist with the acquisition of the Property to relocate their company headquarters. The Sponsor required a flexible loan with high leverage and a low interest rate. The Sponsor had already entered escrow at the time of approaching GSP and was on a strict timeline with only 60 days to close. GSP quickly and successfully structured a first trust deed from a bank as well as an SBA B-piece to secure 90% of the purchase price. GSP was able to provide the Sponsor with a 25-year term, with the first 10 years fixed at a blended rate of 3.80%. The flexible prepayment structure is equal to 5-5-4-4-3-3-2-2-1-1. The high leverage loan allows the Sponsor to use equity towards the continued growth of their business. Thanks to our long-standing relationship with the SBA Certified Development Company (CDC), GSP was able to meet the Sponsor’s deadline and close this transaction in under 60 days.

    $1,375,000 Senior Loan @ 4.75%
    $1,075,000 2nd (SBA) @ 2.58%

    Term: 25 Years
    Loan-to-Purchase Price: 90%
    Prepayment: 5-5-4-4-3-3-2-2-1-1

  • $44,500,000 Heavy Bridge Construction Financing to Add Several Uses to an Existing Office and Warehouse; Secondary Market; San Luis Obispo, CA

    April 14, 2021

    Transaction Description:

    George Smith Partners arranged $44,500,000 for heavy bridge financing in San Louis Obispo, CA to recapitalize and fund construction for additional uses on an existing asset. The completed Project will include five uses including multifamily, warehouse, office, self-storage, and a brewery. This is among the largest private projects actively in development in the local market.
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    All Terms Confidential

  • $5,376,000 (60% LTC) Bridge Loan for Cash-Out Refinance of Industrial Building; Northern California

    March 24, 2021

    Transaction Description:

    George Smith Partners secured $5,376,000 of bridge financing for the refinance of a two-tenant industrial building in Fairfield, CA. The Property is favorably located within a mile of three major freeways and is only a 45-minute drive to both San Francisco and Sacramento. The building is currently 100% occupied, but there were cash-out proceeds required to reposition the Property to make it more attractive to potential buyers. The 26,000 SF building also has 95,000 SF of improved yard space adjacent, which is a major draw for the current tenants. GSP was able to secure a lender that could get comfortable with a majority of the income being derived from the yard space. The financing was comprised of a senior and a mezzanine loan. The blended terms provided a 60% LTC priced at 7.43% with a 1.20% origination fee. The 12-month terms provide the Sponsor the ability to execute his business plan.

    Blended Rate: 7.43% Fixed
    Term: 12 Months
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    LTV: 60%
    Loan Fee: 1.20%
    Reserves: None
    Prepayment Penalty: None
    Guaranty: Non-Recourse for Senior / Recourse for Mezzanine Loan