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$40,000,000 Joint Venture San Diego Luxury Condominium Development

Transaction Description: George Smith Partners successfully structured the $40,000,000 Joint Venture Equity Financing for ground-up development of The Park, an ultra-luxurious condominium development in the Banker’s Hill section of San Diego. Located adjacent to the world famous Balboa Park – home to many of San Diego’s cultural elements & museums – the project is one of only a few new condominium projects to break ground in San Diego since the market downturn. Boasting large floor plates and 500 square foot terraces, the Subject is designed and intended for very discerning clientele. The project includes direct elevator access to most of the units with views of downtown, San Diego Bay and Balboa Park. Culminating over two years, a significant amount of time was invested with this Developer to create the strategies to complete the capitalization of the project. With this final piece of capital, the project is now fully capitalized and will be embarking on vertical construction. Terms are confidential.

Related Financings

  • Acquisition Financing and JV Equity for 57.62 Acres of Vacant Land; Cibolo, TX

    December 22, 2022

    Transaction Description:

    George Smith Partners successfully placed the land acquisition senior loan and JV equity for 57.62 AC of vacant and unentitled land in Cibolo, TX (suburb of San Antonio). We went out to 40+ sources and the Lender loved the site and was aggressive by bringing the effective financing between debt and equity to about 78% LTP. The deal is in the early stages, with no clear exit plan and most lenders were not comfortable with taking on that risk. Initially, the Sponsor was under LOI to flip 30 acres to a tech-related entity post close, however, that fell through when we were already under app. Regardless, the site was highly favored after putting their feet on the ground and closed on the original structure.

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    Term: 12 Months
    Guaranty: Non-Recourse

  • $23,750,000 LP JV-Equity for a 155-unit BTR Community; Loudon County, Virginia

    October 19, 2022

    Transaction Description:

    George Smith Partners is pleased to announce the arrangement of $23,750,000 of LP JV-Equity for the ground-up construction of a 155-unit build-for-rent community in Loudon County, Virginia. The Sponsor originally engaged GSP to capitalize the land from purchase to finalization of the site plan that would be sold to a homebuilder. As headwinds from rising interest rates started affecting homebuilders’ price indications, the Sponsor decided to pivot into developing all 155 units as rental units with a Limited Partner. Through GSP’s deep relationships and the Sponsor’s expertise in development, the transaction changed in scope and direction ending in a great partnership and transaction for the Sponsor.

    Terms Confidential

  • $21,600,000 Construction Financing and $10,700,000 JV Equity for 142-Unit BTR Community; Savannah, GA

    July 13, 2022

    Transaction Description:

    George Smith Partners successfully advised on $21,600,000 in construction financing and $10,700,000 in JV Equity for the development of a 142-unit built-to-rent community in Savannah, GA. The Project features 142 detached single-family homes on a 66.15-acre site. The homes will feature three to four bedrooms with an average square footage of 1,500 across four distinct home styles.

    GSP worked through several strategies with the Sponsor to source the 65% LTC, non-recourse construction debt financing, and a 90% joint-venture equity partner for the ground-up, build-to-rent community. With our marketing efforts highlighting the strength of the Savannah rental market, this project received interest from several groups for both debt and equity.

    The Sponsor projects vertical development to be completed by the end of this year and lease-up to be finalized by Q1 2025.

    Rate: WSJ Prime + 50 with a 4.00% Floor
    Term: 3 Years
    Amortization: Interest Only
    LTC: 65%
    Fee: 1.00%
    Guaranty: Non-Recourse

  • $10,737,375 Joint Venture Equity for a Built-for-Rent Development; Savannah, GA

    April 27, 2022

    Transaction Description

    George Smith Partners advised on $10,737,375 in Joint Venture equity for the ground-up development of a Built-for-Rent community in Savannah, GA. When complete, the Project will consist of 142 single-family homes on 66 acres of land. The Project is located just a 20-minute drive outside of downtown Savannah and just 3 miles northwest of Savannah Quarters Country Club and Blue Moon Crossing; a major retail center in the area.

    GSP marketed the transaction broadly and found several equity providers interested in the Project. Time was of the essence as the Sponsor had closed on the land and was ready to start horizontal development. GSP worked with the Sponsors to pick a group that could move quickly and help share cost overruns. Construction is expected to take 36-months and for the Project to be completed and leased up by Q1 2025.

    Equity Structure: 90/10

  • $46,890,000 Debt and JV Equity Financing for a Ground-Up Single-Family Build-to-Rent Development; Phoenix, AZ

    February 9, 2022

    Transaction Description:

    George Smith Partners successfully arranged a total of $46,890,000 in non-recourse debt and joint venture equity financing for the ground-up development of a single-family build-to-rent community in Phoenix, AZ. The Project spans approximately 14 acres and will feature 185 units across 150 stand-alone residential buildings located just 15 minutes west of Downtown Phoenix. The financing capitalized the acquisition of the development and related construction costs.

    The Sponsor, a top tier homebuilder based in the Southwest, identified the site as an ideal candidate for re-entitlement to residential, and worked alongside the City to fast-track the change of use. The development team recognized the top-tier investment potential of the site given that build-to-rent product has been the fastest growing asset class in the U.S. housing market. Demand has grown exponentially as new ground-up single-family rental communities in the Phoenix area are not only averaging high absorption rates, but they are also achieving 42% rent premiums over neighboring garden-style apartments. GSP was able to identify a non-recourse construction lender with strong local knowledge that understood the high value of the re-entitled land, the strong local need for rental housing, as well as the Sponsor and joint venture equity partner’s extensive background and expertise in the BTR space.

    All Terms Confidential

  • $55,500,000 Debt and JV Equity Financing for a Ground-Up Single-Family Build-to-Rent Development; Tucson, AZ

    January 12, 2022

    Transaction Description:

    George Smith Partners successfully secured a combined $55,500,000 in non-recourse debt and JV equity financing for the development of a ground-up, single-family, build-to-rent community in Tucson, AZ. Spanning 17.1 acres, the Project features 225 units across 168 stand-alone residential buildings and is part of a multi-phase master planned community (expected to span approximately 4,800 acres). The financing allowed for the acquisition of the development site and an anticipated groundbreaking in Q1 2022.

    The Sponsor, a best-in-class homebuilder based in the Southwest, identified the site given its strategic proximity to Tucson’s fast-growing tech corridor. Build-to-rent communities have gained significant traction during a time where vacant rental units are being absorbed in less than 15 days in the Tucson submarket. The Sponsorship team recognized the substantial value behind the grand vision of the master planned community, supported by local knowledge and industry expertise in BTR developments. GSP was able to identify a non-recourse construction lender who not only understood the rapidly growing demand for rental units in a high-growth submarket, but also the Sponsor’s ability to execute on the business plan. GSP was also able to identify a joint venture equity partner that is actively targeting new investments in the BTR space nationwide.

    All Terms Confidential