Transaction Overview
George Smith Partners arranged $47,000,000 in fixed-rate, non-recourse construction financing for a 102-key, four-star boutique hotel with fine dining restaurant in a coastal California community. Entitlements required 20 years to obtain due to significant public resistance. GSP initially arranged equity and fixed-rate debt in spring 2022, but market volatility caused the original developer to exit. A subsequent developer engaged GSP to secure new financing. GSP's approach emphasized the strength of the sponsorship team, high barriers to entry, supportive hotel flag, and the property's positive historical occupancy and ADR metrics.
