$6,160,000 Senior Construction Loan for a Luxury Single Family Residence in Northern California

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. 

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.

Transaction Details: 

George Smith Partners has successfully arranged a non-recourse stretch senior construction loan of $42,120,000 for the ground-up construction of a 188-unit build-for-rent community in Raleigh/Durham, NC. George Smith Partners, through their expertise in build-for-rent communities and strong relationships with a multitude of lenders was able to negotiate favorable terms for the sponsor including a sizable land lift.  The sponsor self-performed most of the site improvements and partnered with a home builder to erect the townhomes on the finished lots in tranches of 15-20 per month. The loan was priced at a floating rate of SOFR plus 475bps with one 6-month extension option. When built, the project will provide the future occupants from the rapidly growing market of Durham a mix of three and four-bedroom townhomes with two-car garages, an amenity center, access to top school districts, and proximity to high income tech jobs. 

Transaction Description:  

George Smith Partners has successfully secured $9,600,000 in funding to facilitate the adaptive re-use of a historic downtown office tower into a multifamily/mixed-use project in Pontiac, MI. These funds will be utilized for the development of 103 market-rate multifamily units and over 23,000 square feet of commercial space.

The team at GSP faced challenges over the course of the raise due to limited comparable properties and public data in the Pontiac area. By leveraging our Sponsors’ local relationships and market knowledge, the GSP team effectively packaged and supported the clients’ 80% LTC financing request for the project’s duration. The lending institution exhibited tremendous confidence in the project’s progress and eventual completion. Upon completion, the project is poised to become a benchmark for mixed-use developments in the emerging downtown corridor of Pontiac, Michigan.

Transaction Description

George Smith Partners arranged $3,600,000 in acquisition financing for a 16-unit multifamily property in West Hollywood, CA. The Property came with five vacant units that were previously leased at well below market rents. The Sponsor, a repeat client, planned to renovate the vacant unit interiors and increase rents accordingly. GSP leveraged its network of relationships to source short-term, non-recourse, fixed rate financing with interest only payments with an early rate lock. However, the delayed appraisal report uncovered two units that were not legally permitted, which the lender excluded in its underwriting. GSP worked with the Lender, Appraiser and Sponsor on creative solutions to get as close to the original loan terms as possible. These negotiations required several extensions on the closing. Also, the rate lock eventually expired. Ultimately, GSP was able to get a $3,600,000 loan amount thanks in part to additional analysis and data provided to the Lender. GSP also leveraged its relationship with the Lender to secure a 4.25% fixed rate. While this was higher than the original locked rate, it was well below the current market rate.

Transaction Description:

George Smith Partners successfully arranged $67,000,000 ($286,324/unit) in non-recourse, construction financing for a 234-unit, mixed-use development in Garden City, ID. This mixed-use development will sit on the edge of the Boise River Greenbelt with stunning views overlooking the water, Boise city and the surrounding mountains. The Project will feature eight retail establishments including a public pub and over 16,000 square feet of open public plaza gathering space. The Project will provide much needed housing to the supply constrained Boise MSA that has seen double digit rent growth in the last few years.

This mid-construction Project had the horizontal construction work completed. GSP was brought in to secure a debt provider to help recapitalize the Project and to see it through completion. With the recent financings in Boise that GSP had worked on, GSP put together a bespoke marketing process. The Project received a tremendous amount of interest from lenders and was put under application in just 7 days! GSP was able to identify a capital partner that provided the best overall value for the Sponsor with competitive pricing, familiarity with the submarket, comfort with the product type, and a closing timeline matching the Sponsor’s needs. The construction loan closed in mid-April providing the necessary financing to bring this Project to fruition. This Project is expected to begin lease up in the second half of 2023.