$6,790,000 Permanent Cash Out Financings for Walgreens and Jack in the Box; Murrieta, CA

Rate: 2.87% Fixed
Term: 5 Years
Amortization: 30 Years
Combined LTV: 65%
Prepayment: 3,2,2,1,0
Guaranty: Carve-outs to entity, no warm body

Transaction Description:

George Smith Partners arranged two loans totaling $6,790,000 in permanent financing with over $1,500,000 cash out for a freestanding Walgreens and Jack in the Box located in Antelope Square Shopping Center in Murrieta, California. Both loans are fixed for 5 years at 2.87%, which is one of the lowest fixed rate financings ever closed by GSP. Just as GSP went into application the impacts of Covid-19 resulted in Jack in the Box ceasing rent payments and many capital providers putting a pause on new deals. GSP was able to negotiate a high leverage, cash out refinance with no warm body for carve-outs. The Sponsor also agreed to hold back principal and interest reserves on the Jack in the Box.


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    $1,500,000 Non-Recourse Rate & Term Office Refinance; Southern California

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    Transaction Description:

    George Smith Partners placed the non-recourse refinance of a Southern California single-tenant office and instruction center owned and operated by a 501c3 approved charity. This office is configured for classroom training, instruction and traditional administrative office use. Deemed an essential business, operations were never delayed as a result of the COVID-19 pandemic. Due to the ownership structure, there is no recourse or carve-out guarantees beyond the charity entity. The cash neutral loan financed all closing costs and reduced the Borrowers’ mortgage constant by 190 basis points for significantly improved cash flow.

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    $11,700,000 Construction Loan on Logistics Yard; Southern California

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    Transactions Description:

    George Smith Partners placed a $11,700,000 construction loan to build a logistics yard that includes trailer parking, auto parking and a maintenance facility. The fenced and secured facility is being built on a speculative basis although there is unmet demand.
    The marketing of the asset during the COVID-19 pandemic was difficult given bank resources first went to asset management and then PPP. The lenders in the market wanted “easy” deals such as low leverage multifamily, build to suits and infill industrial. The Sponsor’s expertise, market knowledge and demand for the product created a competitive lending environment. After talking to over 50 capital providers we had three compete for the loan. Structure, pricing, certainty of execution and speed to close narrowed the lender choice. The chosen Capital Provider went to full credit committee before issuing the application given the specialty nature of the asset. The credit committee also approved all terms negotiated/changed in the application before the process began. This gave us confidence that the chosen Capital Provider would execute on the original terms in the application while other Capital Providers have altered terms during the COVID-19 pandemic.

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    $13,898,000 for Two Multifamily Properties; Southern California

    September 9, 2020

    Transaction Description:
    George Smith Partners successfully arranged two, 10-Year, fixed rate loans for a total of $13,898,000 on two Southern California multifamily properties.
    The first loan was for $6,125,000 and was used to refinance an 18-unit multifamily property built in 1986, located in Hollywood, CA. The second loan was for $7,773,000 and was used to refinance a 26-unit multifamily property built in 1991, located in Culver City, CA.
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    3) Eliminate floating rate risk
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    5) The prepayment expense is offset by the interest savings within approximately 18 months.
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    Transaction Description:

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    Transaction Description:

    George Smith Partners arranged $2,950,000 in permanent financing for a 12-unit multifamily property located in West Hollywood, California. In July of 2019 GSP arranged the acquisition financing for the Sponsor who now retained us to refinance the 85% bridge loan. Even with the current economic uncertainty, GSP was able to increase the loan size while dramatically decreasing the interest cost. GSP obtained a fixed rate of 3.70% for the first 5 years which allowed the Sponsor to recoup some of the capital invested in the rehab. This was particularly difficult to accomplish in light of the previous high leveraged loan.

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    Transaction Description:

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