Rate: 7.75% Fixed
Term: 2 Years, Two 6-Month Extensions
Prepayment: 12 Months Minimum Interest Period
Loan Fee: 1% Origination Fee, 0.50% Exit Fee
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.
Managing Director & Principal / GSP Co-Founder
David R. Pascale, Jr.
Senior Vice President
Senior Vice President
Non-Recourse Bridge Loan for Acquisition of Vacant 10 Unit Multifamily Property | Fixed at 10.75% | No Prepay
November 22, 2023
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.
August 30, 2023
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
Extensions: Two 3 Month Extensions
- Advisors: Robert Horton
April 11, 2023
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.
April 5, 2023
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
March 29, 2023
George Smith Partners successfully arranged $37,716,000 in bridge financing for the refinance of a 78-unit multifamily property in the prestigious Hancock Park neighborhood of Los Angeles. The Property includes 63 vacant units that are scheduled for full interior renovations as part of the Sponsor’s value-add strategy. The loan proceeds include construction dollars for the interior unit renovations, common area upgrades, and parking improvements.
Despite the challenging market dynamics, GSP was able to secure a highly competitive bridge facility that enables the sponsor to execute their business plan and revitalize the generational asset. Located in the heart of Hancock Park, close to the Larchmont Village shopping and dining district, the property is poised to become one of Los Angeles’s premier apartment communities.
The loan provides the sponsor with the flexibility to implement their renovation strategy and ultimately lease up and stabilize the property. GSP is proud to contribute to the redevelopment of housing in Los Angeles while arranging competitive and complex financing for real estate professionals.
Acquisition Financing of a 50% Vacant Multifamily Property; 4.25% Rate, 35 Day Close; Los Angeles, CA
June 8, 2022
George Smith Partners arranged bridge-to-perm financing for the acquisition of a multifamily property located in the Beverly Grove area of Los Angeles, California. The Property was 50% vacant and in need of renovation at the time of close. GSP matched the Sponsor with a lender who could provide the flexibility of a bridge-to-perm loan with a 5-year term, of which the first 24 months would be interest-only to account for the renovation and lease-up period.
Despite today’s high-interest rate market, GSP was able to secure a floating rate at PRIME + 0.25% (4.25% as of today). The market usually caps this kind of structure with a below-market rate at 65%-70% LTV, but GSP was able to leverage its relationships to secure 75% of the purchase price for the Sponsor. The loan has no prepayment penalty, allowing for additional flexibility for the Sponsor. The Borrower was in a 1031 exchange and only had 45 days to close from the time the deal was brought to GSP. GSP quickly identified a bank lender, entered into application, and closed the transaction in just 35 days.
Rate: Prime + 0.25% w/ floor of 3.75%
Term: 5 Years
Amortization: First 2 Years Interest-Only