Rate: 10 Year UST + 3.75%
Term: 5 Years
Amortization: 30 Year
LTC/LTV: 35%/25% Qualified C-PACE Cost Measures
George Smith Partners successfully arranged $6,700,000 in C-PACE financing, complemented by $14,400,000 in fixed-rate construction debt, to fund a new 53-unit luxury garage condominium project in Frisco, Texas. Spanning over 5 acres in an affluent Dallas suburb, this innovative project combines cost-effective financing with a focus on sustainability.
Utilizing C-PACE, an innovative financing solution, GSP ensured low-cost capital for the Sponsor. This approach not only aligns with energy efficiency and conservation standards but also offers financial benefits. Amidst high federal fund rates and market volatility, C-PACE enabled a reduction in capital costs and equity contributions, enhancing investor yields compared to other financing methods, as noted by GSP’s Director, Robert Horton.
The Sponsor, a leading developer in the Dallas-Fort Worth area with a track record of 4.2 million square feet in garage condos and similar projects, sees significant growth potential in this niche market. Their garage condominiums cater to diverse storage needs, offering climate control, power, security, and 24/7 access. Drawing parallels with the evolution of self-storage into a multibillion-dollar industry, they anticipate a similar trajectory for garage condominiums, positioning themselves at the forefront of this emerging market.
This is the first project to break ground in Q1 2024, with GSP assisting in obtaining financing for upcoming sites set to be delivered later in 2024 throughout the Dallas Fort-Worth Metroplex with locations in Tarpley, Rockwall and Garland.
$15,800,000 Bridge Loan for 91 Unit Multifamily Property in Lease Up in the Inland Empire, California
March 1, 2024
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.
February 22, 2024
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%
- Advisors: Matthew Kirisits
February 15, 2024
George Smith Partners successfully arranged a 5-year, non-recourse, interest only loan for a 91% occupied, multi-tenant office building in the Pasadena Playhouse District. While the building was originally built as traditional office, the basement has been converted to a 2-story gym with a pool, and two of the upper floors contained a cooking school which is now being used as a commissary to manufacture food for distribution. The special-use nature of the space provided a challenge in today’s market. GSP worked with a lender to validate the financial strengths of the tenants and their need to be in this building. While most office building refinances require new cash to be invested at closing, GSP was able to negotiate a small amount of cash-out that the Sponsor is allowed to use for any future leasing requirements. This is the third time that GSP has financed the building, for two separate owners.
February 15, 2024
George Smith Partners has successfully secured $2,400,000 in Joint Venture and Co-GP Equity for the renovation/redevelopment project of a current five-story residential building spanning 25,519 square feet and housing 50 affordable units in Downtown DC. Through skillful orchestration, GSP arranged a programmatic equity agreement that offers investors enhanced returns over a prolonged period. This strategic collaboration between the Sponsor and GSP aimed to secure a steadfast equity provider for future ventures.
Simultaneously, the equity provider gains the privilege of tapping into the Sponsor’s expansive project pipeline, thereby opening doors to potential future funding returns. This mutually beneficial arrangement not only ensures the success of the current project but also establishes a foundation for continued collaboration and growth in future endeavors.
AXCS Investments, acting as the Co-GP, brought its investment expertise to the table, leveraging its financial acumen and industry knowledge to forge a strategic collaboration with the Sponsor. This collaboration showcased the synergies between the partners involved, underscoring their ability to seamlessly integrate investment and brokerage services for a successful and mutually beneficial real estate transaction.
February 8, 2024
George Smith Partners successfully arranged a $13.5 million refinancing on behalf of the owners of The Glen Centre, an irreplaceable 44,000 square-foot boutique retail center located in the heart of the Beverly Hills/Bel Air area.
Originally financed 10 years ago by GSP, the new 5-year loan was used to refinance existing CMBS debt on the property that was coming due in February 2024. Serving the surrounding Bel-Air/Beverly Hills community since 1978, this irreplaceable asset was one of L.A.’s first true community shopping centers, designed to meet the needs of surrounding residents by offering one-of-a-kind shops, restaurants and convenient services in a beautiful park-like setting.
February 1, 2024
George Smith Partners successfully arranged bridge financing for the lease-up of a medical office building near the brand-new Providence Cedar-Sinai Tarzana Medical Center which opened at the end of 2023. The building was originally traditional office. The Sponsor allowed leases to roll and spent $5mm on an extensive renovation and conversion to 100% medical office. Once the renovation was complete, the Sponsor received significant tenant interest. Now that the building is almost fully leased, the subject loan will allow the Sponsor to complete the tenant improvements and stabilize the property. The subject loan was competitively priced at P+0.25% and provides a mini-perm option once the property is stabilized.