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$2,400,000 LP Equity Investment for a 50-Unit Affordable Housing in Washington, DC

Transaction Description 

George Smith Partners has successfully secured $2,400,000 in Joint Venture and Co-GP Equity for the renovation/redevelopment project of a current five-story residential building spanning 25,519 square feet and housing 50 affordable units in Downtown DC. Through skillful orchestration, GSP arranged a programmatic equity agreement that offers investors enhanced returns over a prolonged period. This strategic collaboration between the Sponsor and GSP aimed to secure a steadfast equity provider for future ventures. 

Simultaneously, the equity provider gains the privilege of tapping into the Sponsor’s expansive project pipeline, thereby opening doors to potential future funding returns. This mutually beneficial arrangement not only ensures the success of the current project but also establishes a foundation for continued collaboration and growth in future endeavors. 

AXCS Investments, acting as the Co-GP, brought its investment expertise to the table, leveraging its financial acumen and industry knowledge to forge a strategic collaboration with the Sponsor. This collaboration showcased the synergies between the partners involved, underscoring their ability to seamlessly integrate investment and brokerage services for a successful and mutually beneficial real estate transaction. 


Related Financings

  • 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 

  • 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

  • $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 

  • $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

  • $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

  • $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%