
Rate: 8.90% Fixed
Term: 12 months with two 6-month extension options
Amortization: Interest Only
Origination Fee: 1.00%
Exit Fee: None
Prepayment: Open
Guaranty: Non-Recourse
Transaction Description:
George Smith Partners secured 65% LTC financing on infill land in Los Angeles. The land currently has a vacant apartment building which will be demolished for future apartment construction. The financing provided liquidity for the Sponsor and is pre-payable at any time. GSP was able to identify a lending source that understood the market and demand for multifamily development in this location.
Advisors
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Steve Bram
Managing Director & Principal / GSP Co-Founder
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David R. Pascale, Jr.
Senior Vice President
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Allison Higgins
Senior Vice President
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Nick Rogers
Vice President
Related Financings
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Acquisition Financing for a 10-Acre Entitled Multifamily Site; Western State
March 29, 2023
Transaction Description:
George Smith Partners secured an acquisition bridge loan for the acquisition of 10 acres in Laveen, AZ that will be developed with a Humphrey’s designed, 250-unit resort-style multifamily community. The $4,500,000 loan funded 100% of the purchase price plus an interest reserve. The site was put under contract in October 2020 “unentitled” but part of a 35-acre master plan community that includes a 16-bed hospital facility, Big O’ tires, and land for future senior housing development and restaurants. The 35-acre site has a “main and main” location in Laveen which has seen tremendous growth since the opening of Loop 202, a new freeway that connects Laveen and other South Phoenix communities with Interstate 10. The Sponsor fully entitled the site during escrow which included the annexation of 6 of the 10 acres from County to City property.
GSP also advised on the acquisition and procured over $2,000,000 of Co-GP equity to complete predevelopment of the site. GSP was able to find a non-recourse senior lender for the land acquisition that gave 100% value to approximately $2,500,000 of imputed equity. The Sponsor, a Phoenix-based development firm with over 60 years of development experience, will complete its value-engineering during the term of the land loan while GSP procures construction financing.
Rate: 11.75% Fixed
Term: 12 + 6 Month Extension
Origination Fee: 1.5%
Prepayment: Allowed with 6-Months Minimum Interest
Amortization: Interest Only
Guaranty: Non-Recourse- Advisors: Alina Mardesich
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Unentitled Land Financing for Infill Multifamily Development; Los Angeles, CA
January 25, 2023
Transaction Description:
George Smith Partners successfully closed a 1st and 2nd Trust Deed at 85% of the purchase price for unentitled land in the Koreatown neighborhood of Los Angeles, CA. The two loans have a blended rate of 9.98% for the twelve-month initial term. The Sponsor will have a six-month extension option available. GSP was able to identify two lending sources, to maximize leverage, who understood the market and the demand for multifamily development in this location.
First Trust Deed
Rate: 8.90% Fixed
Term: 12 months with One 6-month Extension Option
LTV: 65%
Amortization: Interest Only
Origination Fee: 1.00%
Exit Fee: None
Prepayment: Open
Guaranty: Non-RecourseSecond Trust Deed
Rate: 13.50% Fixed
Term: 12 months with One 6-month Extension Option
LTV: 65% – 85%
Amortization: Interest Only
Origination Fee: 3.00%
Exit Fee: None
Prepayment: 6 Months Minimum Interest
Guaranty: Non-RecourseBlended Debt
Rate: 9.98% Fixed
Term: 12 Months with One 6-month Extension Option
LTV: 85%
Amortization: Interest Only
Origination Fee: 1.47%
Exit Fee: None
Guaranty: Non-Recourse