Rate: 5.15% Fixed
Term: 10 Years
Interest Only: 3 Years
Amortization: 30 Years
Prepayment Penalty: Stepdown, 10-1%
LTV: 60%
DCR: 1.30x
Transaction Description:
George Smith Partners arranged $4,250,000 of permanent financing for a four-property mixed use located in Glendale, CA. The portfolio totals 25,000 square feet and is 100% leased to a variety of technology-based tenants. The non-recourse financing accomplished the Sponsor’s business plan to refinance an existing loan on three of the properties while adding another parcel to the collateral. The properties are nearly contiguous within a two block area. GSP arranged the original bridge and then perm financing on the original properties in 2013-2015. The existing lender waived prepayment for the existing loan in order to underwrite the new financing. The 10-year permanent loan is sized to 60% LTV and has a stepdown prepayment structure. It includes three years of interest only followed by a 30-year amortization and carries a fixed rate of 5.15% over the life of the loan.
Advisors
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Steve Bram
Managing Director & Principal / GSP Co-Founder
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David R. Pascale, Jr.
Senior Vice President
Related Financings
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$3,650,000 Permanent Financing for Office & Retail Property; Santa Barbara, CA
July 5, 2023
Transaction Description:
George Smith Partners successfully closed a refinance of a mixed-use office and retail property in Santa Barbara with a life insurance company. Despite the current market hesitation towards office properties, GSP was able to secure 10-year, fixed-rate financing given the lower leverage. GSP identified a Lender that was comfortable with the office component due to the 30+ small office users and no significant rollover risk. The largest tenants are a restaurant and movie theater which have been in occupancy for over 20 years.
Rate: 5.93%
Term: 10 Years
Amortization: 25 Years
LTV: 24%
Prepayment: Yield Maintenance
Fee: None
Guaranty: Non-Recourse -
Permanent Financing for NNN Single Tenant Retail; Mechanicsburg, PA
February 1, 2023
Transaction Description:
George Smith Partners arranged $3,669,250 in fixed-rate financing to refinance a single-tenant NNN Rite-Aid located in Mechanicsburg, Pennsylvania. GSP sourced a lender that would provide 10-year, fixed-rate debt with no prepayment penalty in order to give the sponsor maximum flexibility. The financing is fixed at 4.98% amortizing over a 30-year period. Rite Aid signed a 26-year lease that expires at the end of the loan term. The tenant’s lease includes four 5-year options at fixed rents.
Rate: 4.98% Fixed
LTV: 65%
Term: 10 Years
Origination Fee: 0.25%
Amortization: 30 Years
Prepayment: Open
Guaranty: Recourse -
Permanent Multifamily Financing; Los Angeles, CA
January 11, 2023
Transaction Description:
George Smith Partners arranged $3,800,000 in permanent financing for the refinance of a stabilized 39-unit multifamily property in Los Angeles, California. The Sponsor locked rate in early summer of 2022 during a time of rapidly increasing interest rates. Due to some unforeseen events, the transaction got delayed multiple times. GSP was able to get the rate lock extended multiple times due to our relationship with the Capital Provider. The rate lock was extended without a single increase to the rate or any additional fees. The loan includes a flexible prepayment penalty structure that allows the Sponsor plenty of options during the next 5 years as well as over $1,500,000 in cash-out proceeds.
Rate: 4.25%
Term: 5 Years Fixed
Amortization: 30 Years
Prepayment Penalty: 3/2/1, Then Open
Deposits Required: None
Guaranty: Non-Recourse -
Perm Loan Debt for Two Multifamily Communities; San Diego, CA
June 15, 2022
Transaction Description:
George Smith Partners secured permanent financing for two newly renovated/repositioned Class C apartment communities in San Diego. Two separate loans were originated for the same Sponsor for the 14-unit and 5-unit multifamily communities.
The Properties were in the process of being completed and leased when the Borrower went under application with a bank. Despite the longer than normal application process and rising interest rate environment, GSP was able to get the bank to extend the rate lock and obtain a favorable coupon.
Rate: 3.30% Fixed for 7 Years, Floating Thereafter at S+2.25%
Term: 30 Years
Amortization: 3 Years Interest-Only
LTV: 70%
DSCR: 1.20x
LTC: 85%
Guaranty: Non-Recourse -
Acquisition Financing of a 50% Vacant Multifamily Property; 4.25% Rate, 35 Day Close; Los Angeles, CA
June 8, 2022
Transaction Description:
George Smith Partners arranged bridge-to-perm financing for the acquisition of a multifamily property located in the Beverly Grove area of Los Angeles, California. The Property was 50% vacant and in need of renovation at the time of close. GSP matched the Sponsor with a lender who could provide the flexibility of a bridge-to-perm loan with a 5-year term, of which the first 24 months would be interest-only to account for the renovation and lease-up period.
Despite today’s high-interest rate market, GSP was able to secure a floating rate at PRIME + 0.25% (4.25% as of today). The market usually caps this kind of structure with a below-market rate at 65%-70% LTV, but GSP was able to leverage its relationships to secure 75% of the purchase price for the Sponsor. The loan has no prepayment penalty, allowing for additional flexibility for the Sponsor. The Borrower was in a 1031 exchange and only had 45 days to close from the time the deal was brought to GSP. GSP quickly identified a bank lender, entered into application, and closed the transaction in just 35 days.
Rate: Prime + 0.25% w/ floor of 3.75%
Term: 5 Years
Amortization: First 2 Years Interest-Only
LTPP: 75%
DCR: 1.10x
Prepayment: None -
$15,100,000 Cash-Out Refinance of a 5-Property Multifamily Portfolio at 3.40% – 70% LTV; Los Angeles, CA
April 11, 2022
Transaction Description:
George Smith Partners arranged $15,100,000 in permanent financing for the refinance of a 5-property multifamily portfolio located in Los Angeles, CA. Using GSP’s vast network of relationships, we were able to source and quickly lock fixed rate financing in a market that is seeing rising interest rates. The Sponsor also wanted to pull cash out of their existing multifamily portfolio to use as equity towards purchasing new properties. The Sponsor had recently completed exterior and interior renovations including common area upgrades to all five properties. The recent improvements allowed the Sponsor to increase rents thus increasing the value of the Property. GSP was able to provide the Sponsor with a 30-year term, with the first 5 years being fixed at a rate of 3.40%. The loan represents 70% loan to value with a minimum 1.20 DSCR. The flexible stepdown prepayment structure is equal to 5,4,3,2,1. The cash-out loan allows the Sponsor to use more equity towards growing their multifamily portfolio. Thanks to GSP’s long-standing relationship with this bank lender, we were able to meet the Sponsors deadline and close this transaction within 35 days from signing the term sheet.
Rate: 3.40%
Term: 30 years term, fixed for first 5 years
LTV: 60%
DCR: 1.20