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$7,000,000 Bridge Loan for Two Infill Industrial Locations in San Bernardino and Livermore, California

Rate: 11.95% Fixed

LTV: 50%

Term: 12 Months

Origination Fee: 2.0%

Exit Fee: None

Guaranty: Non-Recourse

Transaction Description:

George Smith Partners successfully arranged a $7,000,000 loan for infill industrial buildings in San Bernardino and an industrial vacant outdoor storage lot in Livermore. The Sponsor is a well-funded startup that was planning to develop the properties into commercial EV Charging locations. GSP identified a lender that was non-recourse and comfortable with the unique business plan. GSP solved major issues regarding potential environmental contamination and insurance.

Advisors

Related Financings

  • Non-Recourse Bridge Loan for Acquisition of Vacant 10 Unit Multifamily Property | Fixed at 10.75% | No Prepay

    November 22, 2023

    Transaction Description:

    George Smith Partners arranged a 12-month bridge loan for the acquisition of a vacant 10-unit multifamily property. The Sponsor expected that the property would lease up quickly, so they requested a short-term bridge loan with no prepay. GSP was able to source a lender that provided proceeds of 72% of the purchase price. The non-recourse loan is fixed at 10.75% and can be paid off at any time with no penalty. Once the property is stabilized, the Sponsor expects to refinance into a perm loan. 

    LTV: 72% 

    Rate: 10.75% Fixed 

    Term: 12 months with two 3-month extension options 

    Guarantee: Non-Recourse 

    Prepayment: None 

    Origination Fee: 1.50%

  • $34,000,000 Bridge Loan for Multi-Tenant Industrial Building Complex; South Western State

    November 3, 2023

    Transaction Description:

    George Smith Partners arranged a $34,000,000 bridge loan for a newly constructed, “Class A,” Multi-Tenant Industrial Complex in Mesa, AZ. The purpose of the loan is to replace the maturing construction loan with a lower cost bridge financing and to provide an additional one-and-a-half-year runway to complete the Sponsors’ business plan. The 173,000 SF property is currently 66% leased.

    The new bridge loan term of eighteen months provides the flexibility to either lease up and exit quickly with a six-month minimum interest requirement or play the field for an extended period.

    Term: 18 Months with Two 6-Month Extensions
    Prepayment: 6 Months Minimum Interest
    Guaranty: Non-Recourse

  • $4,835,000 Pre-Development Bridge Financing for 205-Unit Multifamily Project; Denver, CO

    August 30, 2023

    Transaction Description:

    George Smith Partners successfully secured a $4,835,000, 72% LTC, fixed, non-recourse, pre-development bridge loan for a 205-unit multifamily ground-up construction project in Denver, Colorado. The bridge loan will be used to complete all the architecture/engineering milestones required to obtain permits and finalize pre-development work prior to breaking ground in Q3 of 2024.

    The Denver metropolitan area is expected to add roughly 216,700 new residents over the next five years, fueled by the expansions of the Denver International Airport and Fitzsimons Medical Campus. The Project is expected to fulfill an underserved workforce demographic by offering an affordable yet high-quality option. The Project will feature a rooftop deck with BBQ grills, outdoor games, picnic areas, a dog run, gym, state-of-the-art security systems, bike parking, package storage, and a mail center with full-time onsite management and maintenance.

    Term: 14 Months
    Interest: Fixed
    Extensions: Two 3 Month Extensions
    LTC: 72%
    Guaranty: Non-Recourse

  • $8,000,000 Bridge Financing for 28-Unit Multifamily Refinance; La Mirada, CA

    May 10, 2023

    Transaction Description:

    George Smith Partners successfully placed an $8,000,000 bridge loan for the refinance of a 28-unit, newly constructed apartment building in La Mirada, California. The bridge loan refinanced the construction loan at building stabilization. The loan amount provided a return of equity to the Sponsor and allowed the Sponsor time to decide whether to sell the property in the future or put a permanent loan on the property if long-term rates start to come down. GSP sourced a lender that was able to provide maximum cash-out and fix the interest rate for the duration of the loan term. The financing is open for prepayment at any point throughout the loan term with a minimum of 12 months interest paid.

    Rate: 7.75% Fixed
    Term: 2 Years, Two 6-Month Extensions
    Amortization: Interest-Only
    Loan-to-Value: 70%
    Prepayment: 12 Months Minimum Interest Period
    Loan Fee: 1% Origination Fee, 0.50% Exit Fee
    Guaranty: Non-Recourse

  • $14,500,000 Bridge Financing for 54-Unit Multifamily Property, Los Angeles, CA

    April 11, 2023

    Transaction Description:

    George Smith Partners successfully placed a $14,500,000 bridge loan for the lease-up of a newly constructed 54-unit apartment building in Los Angeles, California. The bridge loan refinanced the construction loan at maturity and provided time to stabilize the Property. GSP sourced a Lender that was able to provide cash neutral financing and fix the interest rate for the duration of the loan term. The financing is open for prepayment at any point throughout the loan term with a minimum of 12 months interest paid.

    Rate: 7.75% Fixed
    Term: 2 Years, One 12-month extension
    Amortization: Interest-Only
    Loan-to-Value: 70%
    Prepayment: 12 Months Minimum Interest Period
    Loan Fee: 1% Origination Fee, 0.50% Exit Fee
    Guaranty: Non-Recourse

  • $11,930,000 Bridge Financing for 3 Properties; Southern CA

    April 5, 2023

    Transaction Description:

    GSP utilized a quick close bridge fund to provide 3 separate loans:
    $7,150,000 Distressed Multifamily Purchase – 80% LTC in Los Angeles
    $2,200,000 Mixed-Use, Retail-Residential – 65%LTV in Los Angeles/Venice
    $2,580,000 Restaurant/Retail – 65% LTV in Pasadena

    George Smith Partners successfully arranged three bridge financings in Southern California. In today’s turbulent market, private quick close options are sometimes necessary. The ability to act quickly often allows our clients to become the chosen Buyer- purchasing these Properties at a large discount or solve a tenant/occupancy issue before a permanent refinance.

    GSP worked with a local REIT to develop a program that includes a first and second private mortgage of up to 85% of acquisition price. With the fund and GSP, the loans are underwritten to the future value, to allow the client to implement their strategy. When used for purchasing a property, the loans are designed to provide the same surety of close as an all-cash buyer, with no appraisal needed and the ability to close as fast as 5 business days. The loans are non-recourse and have no prepayment penalty.

    These loans are cheaper and easier than equity partners and allow the Sponsor to take advantage of opportunities using less cash.

    Blended Rate: 7.9% – 10.5%
    Blended Rate – Based on Leverage
    Loan to Purchase Price: Up to 85%
    Term: 12 Months
    Guaranty: Non-Recourse