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$42,000,000 Construction Loan for a 252-Unit Mixed-Use Multifamily Project in Downtown Salt Lake City, Utah

Terms: Confidential

Transaction Description:

George Smith Partners arranged a $42,000,000 senior construction loan for the ground-up development of a 252-unit mixed-use luxury apartment community in the Marmalade District of Downtown Salt Lake City, Utah. The mixed-use project will include ground floor retail and features Class A apartments with modern design.

GSP was able to identify several competitive lenders that recognized the Sponsor’s ability to execute large-scale multifamily projects, based on the successful delivery of a similar project they built in the MSA. GSP was able to leverage various lenders in order to help procure the most competitive terms available with a three-year term and two, one-year extension options.

Advisors

Related Financings

  • $38,600,000 Limited Recourse, Cash Neutral Mid-Construction Financing for a 122-Unit Multifamily; Santa Rosa Beach, FL

    July 14, 2021

    Transaction Description:

    George Smith Partners successfully arranged a $38,600,000 mid-construction refinance loan for a multifamily project in Santa Rosa Beach, Florida. The limited-recourse loan refinanced out the existing debt and provided additional proceeds to complete the development and flexibility to explore a condo sell out. The 122-unit Project will include state-of-the-art facilities, including a general store, a fully equipped restaurant, fitness center for guests, and a workspace. The Project is expected to receive certificate of occupancy by September 2021.
    GSP was retained when the Project was 70% complete with an expected certificate of occupancy by September 2021. Since the Project began in 2019, nearly all the land in the area had been purchased by developers at a higher basis and condos began to sell at higher than $500/psf. The Sponsors seized the opportunity to add additional equity, bringing the Project to condo-specifications and the ability to sell out at a higher valuation. GSP canvassed a broad range of lenders with long-standing relationships and fielded multiple proposals. GSP worked with the Sponsor to find a lender that reached a higher proceeds level and provided the flexibility to lease up the Property as multifamily, sell units as condos or a mix of the two.

    Term: 12-month term with 6-month extension option, extension fee @ 1.25%
    LTC: 85%
    Fee: 2 points in – 0 points out

  • $56,500,000 Construction Financing for a Coastal Infill Mixed-Use Asset; Solana Beach, CA

    May 19, 2021

    Transaction Description:

    George Smith Partners arranged $56,500,000 in construction financing for the development of a mixed-use coastal infill project in Solana Beach, CA. The mixed-use development features 55,000 square feet of office space, 9,000 square feet of retail and 25 apartment units.

    Located just one block from the beach and the Cedros Avenue Design District, the two-story development focused on sustainability will be the largest mixed-use project along Highway 101 in the past three decades. The dearth of comparable projects, especially ones with large office floorplates, presented a unique opportunity.
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  • $41,100,000 Non-Recourse Stretch Senior Construction Loan for 180 Micro-Unit Multifamily Development; Hollywood, CA

    May 12, 2021

    Transaction Description:

    George Smith Partners placed a $41,100,000 Non-Recourse, stretch senior construction loan for the ground-up development of a 6-story micro unit/co-living project in Hollywood, California. When complete, the Project will consist of 180 fully furnished, all-inclusive micro units within 49 pods with an average micro unit size of 276 sf. The Project lies in an Opportunity Zone.

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    Rate: LIBOR + 7.50 %
    Term: 30 Months + 6 Month Extension
    Loan-To-Cost: 80%
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    Amortization: Interest Only
    Guaranty: Non-Recourse

  • $58,000,000 Life Co. & Preferred Equity Non-Recourse Construction Financing; Culver City Adjacent, CA

    April 28, 2021

    Transaction Description:

    George Smith Partners successfully closed $58,000,000 in non-recourse construction financing for a seven-story, mixed use development across from Sony Pictures Studios and adjacent to Culver City, CA. The Project features 139 apartment units over 1,969 SF of ground floor retail. The Sponsor received a density bonus thanks to TOC incentives, in exchange for allocating 14 affordable units.

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    Rate: L + 390 (senior)
    Term: 5 Years
    Amortization: Interest Only
    Prepayment: None upon Certificate of Occupancy
    Guaranty: Non-Recourse; Completion Guarantee with Standard Carveouts to an Entity

  • $7,685,000 Senior Construction Financing for a Mid-Developed Construction Building; Los Angeles, CA

    March 31, 2021

    Transaction Description:

    George Smith Partners secured a $7,685,000 construction loan for the completion of a development project in Los Angeles, California. The construction project was being fully paid out of pocket and had just finished two levels of subterranean parking. At this point of completion, the Sponsors decided to finance the remaining project costs instead of coming out of pocket the rest of the way. Many lenders didn’t want to finance the Project due to the mid-construction risk and those that did wanted some sort of banking relationship/deposit to come with the Project. GSP secured a capital source that was comfortable with the mid-construction project and didn’t require the Sponsors to bring in any fresh equity nor did they require any banking deposits.

    Rate: 5.50%
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    Amortization: Interest Only
    LTC: 55%
    Guaranty: Full recourse

  • 97% Financing; $39,650,000 Construction Debt and $18,750,000 Equity for 153-Unit Multifamily Opportunity Zone Development; Downtown Sacramento

    March 24, 2021

    Transaction Description:

    George Smith Partners successfully placed $39,650,000 in construction debt and $18,750,000 in limited partner equity for the ground up construction of an Opportunity Zone multifamily development with ground floor retail in Downtown Sacramento, at the peak of COVID. The challenges included uncertainty regarding COVID during the pre-vaccine period, political uncertainty, an offshore borrower, and California’s tenant friendly policies. Many investors were too cautious to make a commitment in the middle of COVID with no anticipated end in sight. These risks were offset by exceptional sponsorship, a strong market, and a well margined deal.
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    All Terms Confidential