Transaction Overview
George Smith Partners secured $8,400,000 for an acquisition bridge to perm loan for a 122-unit multifamily Property portfolio in Dallas, Texas. The Property had a single family that owned the project for over 20 years and never tried to push rents, so the debt service coverage at closing was below 0.20x. For most lenders, this was a quick pass, but GSP utilized its vast relationships and experience in the community development space to identify a unique mission-based bridge lender who would see the community benefit for the renovation of this property.
In addition to the low debt yield, the property also had a higher vacancy than the rest of the market and higher expenses. Because of our relationship with the Lender, we were able to expedite the application process. GSP assisted the Sponsorship team in developing a strong business plan and creating a clear vision of how to reach their occupancy goals. This included proving the benefits of the Sponsorship structure which incorporated their experienced in-house rehab team, as well as getting the Lender comfortable with the Sponsorship’s overall mission. GSP understood the dynamics of the Sponsorship team and helped the Lender understand the strategy that would allow for a quick lease-up and a stronger NOI.
