Rate: 7.97%% Fixed
Term: 1 Years
Amortization: Interest Only
Extensions: One 6-Month Option
Loan Fee: 1%
Recourse: Non-recourse
Prepayment: Open
Transaction Description:
George Smith Partners secured a $4,250,000 bridge loan for a new 13-unit multifamily community located in the Larchmont Village area of Los Angeles, CA. The non-recourse loan will be utilized to refinance the Project’s construction debt and complete the Property to get to Certificate of Occupancy. The loan represents 65% loan to stabilized value and is structured with a 1-year initial term with interest only payments. The loan allows for open prepayment and carries one 6-month extension option.
The loan is secured by a recently constructed mixed-use development comprised of 13 studio, one and two-bedroom units. The Project offers several unique features including several 2-story loft/townhome style apartments, an expansive roof top lounge with views, partial subterranean parking garage with a semi-automated parking system and EV charging stations.
GSP was able to secure a lender that underwrote to the stabilized NOI, closed with no debt service reserve, no recourse, and no prepayment fee. The selected lender could move quickly, did not require an appraisal, and funded within three weeks after issuing an application.
Related Financings
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Construction Loan for the Redevelopment of an 8-Unit/26 Bedroom Student Housing Community in Los Angeles, California
April 11, 2024
Transaction Description:
George Smith Partners has sourced a construction loan for the redevelopment/repositioning of a proposed 8-unit/26-bedroom student housing community in Los Angeles just two blocks away from the University of Southern California.
The Sponsor is one of the premier private student housing operators in the market with a track record of delivering best-in-class off-campus housing. The Sponsor’s portfolio includes 60 buildings/600+ bedrooms located within the Project’s competitive neighborhood. Despite fluctuations in the capital markets, GSP secured attractive financing for the Sponsor to commence and execute their business plan.
Proceeds: $5.65M
Rate: Prime +1%
Term: 18 months + one six-month extension
Origination Fee: 2.5%
Guaranty: Non-Recourse
- Advisors: Evan Kinne Ed Steffelin Nick Shapiro
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Acquisition Bridge Loan for a Newly Constructed 10-Unit Multifamily Property in Florida
April 4, 2024
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.
Rate: 10.25% fixed
Term: 9 months with one 3 month extension
Origination Fee: 1%
Guaranty: Non-Recourse
- Advisors: Matthew Kirisits
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$23,500,000 Construction Financing for a 136,000 SF Industrial Park in a Southwestern State
March 21, 2024
Transaction Description:
George Smith Partners successfully arranged $23,500,000 in construction financing for the development of a 136,000 SF industrial park in a Southwestern State. The development includes two free standing buildings that can be programmed for manufacturing, distribution, or other industrial use, and is ideal for owner-users or single-user tenants.
The capitalization included land that had been owned free and clear for over two decades and contributed to the deal as Sponsor equity. GSP identified a lender that understood the land contribution and spec development elements of the deal. As well as the unique positioning of the two buildings as an underserved, small-scale, free-standing product in the State’s industrial market.
Terms: Not Disclosed
- Advisors: Brandon Asherian Grant Pugatch
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$9,800,000 Construction Financing for a 36-Unit Ground up Multifamily Property in a Southwestern State
March 14, 2024
Transaction Description:
George Smith Partners successfully arranged a non-recourse, stretch senior, construction loan of $9,800,000 for the ground up construction of a 36-unit mixed-used development in the submarket of a Southwestern State. GSP, through their expertise in multifamily development financing and strong relationships with a wide range of lenders, was able to negotiate favorable terms for their client including pari passu funding. The loan was priced at an 11.5% fixed rate with three, three-month extension options.
Building upon the Sponsor’s local market knowledge, the GSP team effectively packaged and supported the client’s 70% LTC financing request for the project’s duration. Upon completion, the project is poised to become a standout addition to the city’s Art’s District.
Rate: 11.5% fixed rate, full term interest only
Term: 18 months with three (3) three (3)-month extension options
LTC: 70%
Guaranty: Non-Recourse
- Advisors: Evan Kinne Ed Steffelin Jake Sachse Nick Shapiro
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$15,800,000 Bridge Loan for 91 Unit Multifamily Property in Lease Up in the Inland Empire, California
March 1, 2024
Transaction Description
George Smith Partners successfully arranged a $15,800,000 bridge loan for a newly constructed 91-Unit apartment complex in the Inland Empire. The complex is age restricted for independent senior living, 55 and over. Amenities include resort style pool, spa/hot tub, fitness center, recreation room, BBQ-Picnic area and hair salon. Demand has been strong as lease up began in May and the property is expected to be fully stabilized over the next few months. The financing allows borrower to push income and time an agency perm loan as rates (hopefully) decline.
Rate: 30 Day Term SOFR + 3.95% Floating
Term: 12 Months plus 2, 6 – month extensions
Amortization: Interest Only
Origination Fee: 0.5%
Guaranty: Non-Recourse
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$6,160,000 Senior Construction Loan for a Luxury Single Family Residence in Northern California
February 22, 2024
Transaction Description
George Smith Partners closed a $6,160,000 senior loan for the construction of a luxury single family residence in Northern California. The loan is fixed at a rate of 10.5% for 18 months with full term interest only payments. The Sponsor is the U.S. affiliate of a Brazil-based construction and design company. Because of the Sponsor’s extensive experience constructing and selling luxury homes in the market, the lender was able to get comfortable with the international sponsorship. The lender provided proceeds of 70% of the appraised value of the completed project.
Rate: 10.5% fixed rate, full term interest only
Term: 18 months with one 6 month extension option
Origination fee: 1.5%
LTV: 70%
- Advisors: Matthew Kirisits