George Smith Partners successfully placed the 90% LTC financing on the acquisition of a coastal restaurant and apartment property. The loan provided capital to allow the sponsor to redevelop and reposition the restaurant to a novel new concept.
Challenge: Capital providers were concerned the change in branding would negatively impact the cash flow. The sponsor required the maximum proceeds to cover all capital improvements and complete their rebranding.
Solution: GSP supported the higher leverage by accenting the value of the stabilized apartment units as well as the equity of the liquor license. GSP confirmed that these additional assets substantially supported the restaurant and provided the additional collateral for the loan.
