Transaction Overview
George Smith Partners arranged $4,650,000 in non-recourse bridge financing for the cash-out refinance of a land parcel in downtown Nashville, TN. The by-right multifamily development site, comprising 210 units with 5,000 square feet of ground-floor commercial space, is located in a highly infill location. Proceeds were used to retire existing liens, with a cash-out provision, while positioning the Sponsor to advance the project ahead of a vertical construction raise.
The transaction presented compounding structural and timing pressures. The Sponsor carried joint and several liability exposure tied to a co-principal whose portfolio had experienced significant distress. Absent a closing by a hard deadline, the existing lender was prepared to initiate foreclosure proceedings within days. Securing non-recourse execution was therefore a critical structuring priority. A partnership restructuring required sourcing and integrating a new capital partner for balance sheet support and credit enhancement, as lender processing delays further compressed an already narrow window.
GSP identified a debt fund with appetite for land bridge financing in high-growth infill markets. The debt fund structured the facility on a fully non-recourse basis and closed on time, ahead of the foreclosure deadline. With land financing secured, focus turns to assembling the full capital stack to take the project vertical.
