Rate: Prime + 0
Term: 3 years
Amortization: IO
LTC: 65%
LTV: 60%
Guaranty: Non recourse
Lender Fee: 1 point
Transaction Description:
George Smith advised on $27,000,000 of debt and equity financing for 163 purpose built, single family homes for rent in Humble, Texas. Bank debt of $16,700,000 was secured on a non-recourse basis. The homes will range from 1,200 sf to 1,500 sf and will each have a two car garage. Amenities are expected to include greenspaces, a neighborhood lodge, a fitness room, a children’s playroom, and a playground for both children and adults. Infrastructure development will commence immediately, and home construction is expected to commence in the second quarter of 2020. Initial occupancy is expected for late in the second quarter of 2020. The Property will include on-site leasing and management. The location of the Property is in close proximity to growing employment hubs including George Bush Intercontinental Airport, Generation Park, and the Port of Houston. The Community is situated in the award-winning Humble Independent School District and residents are zoned to the recently built Groves Elementary School and Westlake Middle School in The Groves master-planned community, as well as Summer Creek High School.
Advisors
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Ed Steffelin
Managing Director, GSP; President, AXCS Investments
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Evan Kinne
Managing Director, GSP; CEO, AXCS Capital
Related Financings
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$7,000,000 Cash-Out, Non-Recourse, Refinance on a Single-Tenant Property; Venice Beach, California
March 18, 2020
George Smith Partners arranged a $7,000,000 ($901/sf) cash-out, non-recourse, first mortgage from a REIT to refinance a single-tenant, owner-user office property in Venice Beach, California. The Lender was comfortable with providing the cash-out financing, although the single tenant was in bankruptcy protection due to the property’s irreplaceable location which is blocks from the ocean in Venice Beach. The financing provides 12 months of bridge term while the Tenant works through bankruptcy proceedings. Although the loan is non-recourse, the Lender did not require an appraisal or other third-party reports. Sized to 60% of the Lender’s underwritten value, the loan priced at 6.90% fixed for the 12-month loan duration.
Rate: 6.90% Fixed
Term: 12 Months
Amortization: Interest Only
Loan to Value: 60%
Lender Fee: 1.00%
Prepayment: Open Full Term
Guaranty: Non-Recourse
