$37,716,000 Bridge Financing for 78-Unit Multifamily Property; Los Angeles, CA

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.

Transaction Description:

George Smith Partners arranged a 12-month bridge loan for the acquisition of a vacant 10-unit multifamily property. The Sponsor expected that the property would lease up quickly, so they requested a short-term bridge loan with no prepay. GSP was able to source a lender that provided proceeds of 72% of the purchase price. The non-recourse loan is fixed at 10.75% and can be paid off at any time with no penalty. Once the property is stabilized, the Sponsor expects to refinance into a perm loan. 

Transaction Description:

George Smith Partners successfully secured a $4,835,000, 72% LTC, fixed, non-recourse, pre-development bridge loan for a 205-unit multifamily ground-up construction project in Denver, Colorado. The bridge loan will be used to complete all the architecture/engineering milestones required to obtain permits and finalize pre-development work prior to breaking ground in Q3 of 2024.

The Denver metropolitan area is expected to add roughly 216,700 new residents over the next five years, fueled by the expansions of the Denver International Airport and Fitzsimons Medical Campus. The Project is expected to fulfill an underserved workforce demographic by offering an affordable yet high-quality option. The Project will feature a rooftop deck with BBQ grills, outdoor games, picnic areas, a dog run, gym, state-of-the-art security systems, bike parking, package storage, and a mail center with full-time onsite management and maintenance.

Transaction Description:

George Smith Partners successfully placed an $8,000,000 bridge loan for the refinance of a 28-unit, newly constructed apartment building in La Mirada, California. The bridge loan refinanced the construction loan at building stabilization. The loan amount provided a return of equity to the Sponsor and allowed the Sponsor time to decide whether to sell the property in the future or put a permanent loan on the property if long-term rates start to come down. GSP sourced a lender that was able to provide maximum cash-out and fix the interest rate for the duration of the loan term. The financing is open for prepayment at any point throughout the loan term with a minimum of 12 months interest paid.

Transaction Description:

George Smith Partners successfully placed a $14,500,000 bridge loan for the lease-up of a newly constructed 54-unit apartment building in Los Angeles, California. The bridge loan refinanced the construction loan at maturity and provided time to stabilize the Property. GSP sourced a Lender that was able to provide cash neutral financing and fix the interest rate for the duration of the loan term. The financing is open for prepayment at any point throughout the loan term with a minimum of 12 months interest paid.

Transaction Description:

GSP utilized a quick close bridge fund to provide 3 separate loans:
$7,150,000 Distressed Multifamily Purchase – 80% LTC in Los Angeles
$2,200,000 Mixed-Use, Retail-Residential – 65%LTV in Los Angeles/Venice
$2,580,000 Restaurant/Retail – 65% LTV in Pasadena

George Smith Partners successfully arranged three bridge financings in Southern California. In today’s turbulent market, private quick close options are sometimes necessary. The ability to act quickly often allows our clients to become the chosen Buyer- purchasing these Properties at a large discount or solve a tenant/occupancy issue before a permanent refinance.

GSP worked with a local REIT to develop a program that includes a first and second private mortgage of up to 85% of acquisition price. With the fund and GSP, the loans are underwritten to the future value, to allow the client to implement their strategy. When used for purchasing a property, the loans are designed to provide the same surety of close as an all-cash buyer, with no appraisal needed and the ability to close as fast as 5 business days. The loans are non-recourse and have no prepayment penalty.

These loans are cheaper and easier than equity partners and allow the Sponsor to take advantage of opportunities using less cash.