8 Day Close on an $11,000,000 Cash-Out Loan for a Spec Single Family Home; Southern California

Transaction Description:

George Smith Partners secured $38,500,000 for the recourse, cash-out refinance of a 950-unit multifamily building located just outside of Cleveland, Ohio. The waterfront building is situated in one of the best suburbs. The Sponsor purchased the building about 12 months ago with large vacancies and completely renovated and rehabbed the Property.

Challenges:
With the successful renovation plan making progress, the Property was leased from 30% to just above 70% occupancy. Most lenders require 90% occupancy for 90 days to qualify for long-term fixed-rate financing. The Property’s current bridge loan had a floating rate that was increasing as both short-term and long-term rates increased in today’s challenging environment.

Solution:
With GSP’s help, the Sponsor utilized a detailed lease-up business plan which allowed the Lender to understand the strength of the asset, location, and experience of the Sponsor. GSP originated a permanent loan for this 72% leased property and the Lender was able to underwrite to in-place income and allow for low-cost, 5-year financing at a below market rate with no prepayment penalty.

Transaction Description:

George Smith Partners successfully placed a $10,000,000 loan with a 5-year fixed interest rate for two mixed-use properties located in Hollywood, CA. The ground floor retail for both properties has short-term roll and is in need of renovation. The financing provides significant cash-out, which the Sponsor will use to improve the Properties and to re-tenant the buildings with new, long-term, market rate leases. GSP sourced a lender that was able to provide cash-out financing, limited recourse that burns off at full stabilization and lock the rate at application – critical in this current volatile interest rate environment.

Transaction Description:

George Smith Partners arranged permanent financing for a 16-unit multifamily property located in Los Angeles, CA. The loan is fixed at a rate of 3.1% for 5 years and has 3 years of interest-only payments. The deal went into application several months ago when interest rates were 100 basis points lower. Because of GSP’s strong relationship with the Lender, the original terms were held in an increasing rate environment. The financing does not require any deposit relationship with the bank.

Transaction Description:

George Smith Partners arranged $7,600,000 in permanent financing for the refinance of a 30-unit multifamily loan located in Los Angeles, CA. Due to GSP’s strong relationship with this Lender, we were offered a special bucket of low-cost capital for select sponsors. GSP was able to connect our long-term client’s property to the lower cost capital. The Sponsor recently completed building improvements including unit renovations, new foundation, new structural beams, and system upgrades. 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 7-year term, fixed at a rate of 3.5%. The financing represents 80% loan to value with a minimum 1.20 DSCR. The flexible stepdown prepayment structure is equal to 2% in Year 1, 1% in Year 2, and 0% thereafter. The cash-out loan allows the Sponsor to use more equity towards continuing to grow their multifamily portfolio. Thanks to our long-standing relationship with this Community Development Lender, GSP was able to meet the Sponsor’s deadline and close this transaction within 45 days from signing the term sheet.

Transaction Description:

George Smith Partners secured a $2,083,000 agency loan for the cash-out refinance of a stabilized 44-unit multifamily property located in Dallas-Fort Worth, TX. GSP used its relationship with a capital provider whom we had closed multiple loans with. This lender recently closed a similar loan in this market. They understood the market and felt comfortable with the market characteristics. The Sponsor recently completed exterior and interior renovations including common area upgrades. 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 7-year term and a flexible prepayment structure equal to 5%, 5%, 4%, 4%, 3%, 2%, 1%. The loan structure allows the Sponsor to refinance out of an expensive loan with a fixed rate of 3.38%, while also receiving cash out. The Sponsor is using cash-out proceeds to continue their business plan of purchasing and renovating additional properties. Thanks to our long-standing relationship with this Lender, GSP was able to meet the Sponsors deadline and close this transaction within 60 days from signing the term sheet.

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.