Transaction Description:

George Smith Partners successfully placed a $7,800,000 loan for the acquisition and repositioning of a student housing property serving a major Southern California university. George Smith Partners went to a variety of lenders and identified a non-recourse capital provider who believed in the deep value-add business plan, with 23% of loan proceeds funding CapEx.George Smith Partners structured the loan at 70% of total project cost. The funding covers the acquisition, CapEx, construction costs, and the interest reserve.

Rate: 30-day LIBOR + 345 basis point spread, 4.45% rate floor
Term: 36 months, two 12-month extension options
Leverage: 70% LTC
Amortization: Full term interest only
Recourse: Non-recourse with standard carve outs
Fee: 1.5% Origination Fee, 0.5% Exit Fee