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Financings

  • $5,340,000 Land Acquisition Loan for 226 Affordable Housing Units; Southern California

    October 20, 2021

    Transaction Description:

    George Smith Partners arranged $5,340,000 in a pre-entitlement land development loan for a proposed 226-unit affordable housing project in California. The 60% loan to acquisition is priced at 4.50% over LIBOR (with a 5.50% floor) interest only. The Sponsor is addressing a major need for affordable housing in the state. GSP secured a unique capital source to arrange favorable and flexible capital that met with the Sponsor’s timeline. The interest-only land loan was priced at 5.50%, with an 18-month term and one 6-month extension option. There is additional flexibility with the loan structure having no prepayment penalty. Despite dealing with a strict closing deadline on the purchase, GSP was able to identify a lender who could execute on terms and close within the purchase agreement.

    Rate: 5.50%
    Term: 18 Months, One 6 Month Extension
    Amortization: Interest Only
    LTV: 60%
    Prepayment: None

  • $3,987,000 Permanent Financing for 28-Unit Apartment Building; Downtown Phoenix, AZ

    October 20, 2021

    Transaction Description:

    George Smith Partners secured $3,987,000 for the refinance of a multifamily building located in Downtown Phoenix, AZ. The Sponsor originally purchased the property as a two-story building. Since acquisition, the Sponsor added a third story to the existing structure, increasing the total unit count by 55%. Along with the addition, they renovated all the units to maximize the property value. The Property sits in a fantastic location, walking distance from a wide variety of restaurants and entertainment, and Arizona State University’s Downtown Campus. The non-recourse financing is fixed at a 3.18% rate for 7 years. The 70% LTV financing provided a return of all initial equity invested.

    Rate: 3.18%
    Term: 7 Years
    Amortization: 30 Years
    LTV: 70%
    Origination Fee: Par
    Guaranty: Non-Recourse

  • $2,100,000 Co-GP Raise for a 250-unit Multifamily Development; Phoenix, AZ

    October 13, 2021

    Transaction Description:

    George Smith Partners placed a $2,100,000 Co-GP investment on a proposed 250-unit multifamily development site in Phoenix, AZ. The land is under contract with entitlements completed and development approvals underway. The Project will be a resort-style community comprised of studio, 1, 2 and 3-bedroom units in a farm-style design offering a clubhouse amenity, fitness gym, outdoor recreational areas as well as attached and detached garages. The Project is located on a main intersection in one of Phoenix’s emerging suburban villages with 15-minute access to downtown via the recently opened Loop 202. This area is served by over 300,000 square FEET of national credit big box, grocery anchored and service retail. The Co-GP investment will allow the Sponsor to complete the predevelopment phase to shovel ready. It will also allow the Sponsor/Developer to collect 100% of its developer and construction management fees. The estimated project cost is $60,000,000. George Smith Partners has been exclusively engaged to arrange the entire capital stack for the next phase of the Project.

    All Terms Confidential

  • $8,700,000 Construction Financing for Office Development; Denver, CO

    October 13, 2021

    Transaction Description:

    George Smith Partners successfully advised on a $8,700,000 construction financing for the development of a 5-story, 23,654 square feet office building located in Denver, CO. The Sponsor’s combined 30-year real estate development experience in conjunction with their partner’s 40+ years of commercial leasing experience was key to securing the financing. GSP worked through several strategies with the Sponsor to source the right non-recourse financing terms for the ground-up ‘spec’ office transaction. Ultimately, GSP successfully obtained several highly reliable financing options, and the Sponsor selected a lender with exceptional terms.

    The Sponsor projects a timely delivery for completion of the project in late 2022 and intends to market the lease of the building during design and construction. With the robust economic recovery from the COVID-19 pandemic, the greater Denver metropolitan area is experiencing rapid job growth and expansion, increasing the demand for office spaces.

    Rate: L + 925 w/ 0.50% Libor floor
    Term: 18 months
    LTC: 75%
    Prepayment Penalty: 12 months min. interest
    Guaranty: Non-Recourse

  • $9,345,500 Acquisition Financing for 3 Single Tenant Drug Stores (2 CVS and 1 Walgreens)

    October 6, 2021

    Transaction Description:

    George Smith Partners arranged 3 separate loans with a single portfolio lender for our Sponsor’s acquisition of 3 drug stores from 3 different sellers. Timing was critical as 2 of the Property acquisitions were part of a 1031 exchange nearing the deadline. The fixed rate financing with no prepayment gives the Sponsor maximum optionality with no rate risk. The Sun City Seller had to delay closing due to a defeasance issue. This resulted in a mid-process strategy shift. That property was removed from the exchange and the Omaha property was added to the exchange. GSP worked with the Lender and all counsels to have those 2 loans re-documented with new ownership structures to accommodate the exchange.

    CVS – Sun City, AZ
    20-year lease term
    Loan Amount: $2,372,500
    Rate: 3.29%
    Term: 10 years, rate adjusts after year 5
    Amort: 30 years
    LTV: 67%
    Prepayment: Prepayable anytime at par
    Guaranty: Recourse
    Lender Fee: 0.25%

    Walgreens – Omaha, NB
    15-year lease term
    Loan Amount: $4,410,000
    Rate: 3.74%
    Term: 10 years fixed
    Amort: 30 years
    LTV: 67%
    Prepayment: Prepayable anytime at par
    Guaranty: Recourse
    Lender Fee: 0.25%

    CVS – Davenport, IA
    12-year lease term
    Loan Amount: $2,563,000
    Rate: 3.29%
    Term: 10 years, rate adjusts after year 5
    Amort: 30 years
    LTV: 67%
    Prepayment: Prepayable anytime at par
    Lender Fee: 0.25%

  • $18,450,000 Permanent Financing for a 122,000 SF Grocery Anchored Shopping Center; Northern California

    October 6, 2021

    Transaction Description:

    George Smith Partners successfully placed $18,450,000 in permanent financing on a 122,000 SF grocery anchored shopping center located in Northern California amidst the COVID-19 pandemic. The Center is anchored by a 32,000 SF Smart & Final, a 26,000 SF Ross Dress for Less and a 22,000 SF Planet Fitness. Despite tenants demonstrating commitment to the space—with an average lease term of 15 years and consistent renewals—capital markets were cautious of financing retail and were specifically concerned with COVID-19 rent deferrals and closures due to the California directives and mandates. Furthermore, capital providers expressed uncertainty as to how retail centers would be impacted in the long run and the ramifications of the future post-pandemic retail environment. GSP was able to ensure competitive pricing and proceeds based on having a best-in-class sponsor and strong and diverse anchors, despite being in a cautious financial environment hesitant towards retail.

    Rate: SWAP + 193
    Term: 10 Years
    Amortization: 10 Years Interest Only
    LTV: 65%
    Guaranty: Non-Recourse

  • Permanent Refinance of Sonic Drive-In; Rialto, CA

    September 29, 2021

    Transaction Description:

    George Smith Partners arranged $1,300,000 in take-out financing for a fast-food restaurant, Sonic Drive-In, located in Rialto, CA. The Property was built at the end of 2019, consisting of 2,727 SF with a total of 16 drive-in ordering stations on a 38,967 SF parcel. The Sponsor, a repeat client, acquired the raw unentitled land in mid-2019 and the take-out financing was used to pay off the existing lender. The Property is on a ground lease, which posed a challenge and limited the number of interested lenders. The vast pool of relationships GSP has access to helped overcome this and enabled us to execute on a long-term solution.

    Rate: 4.125% Fixed for 10 Years
    Term: 25 Years
    LTV: 50%
    Prepayment: Yield Maintenance
    Guaranty: Full Recourse

  • $4,030,000 Non-Recourse Bridge Acquisition Financing for 44% Occupied Retail Center; Tempe, AZ

    September 29, 2021

    Transaction Description:

    George Smith Partners secured $4,030,000 of bridge financing for the acquisition of retail shop space in Tempe, AZ. The collateral encompassed approximately 30,000 sf of in-line retail space and an outparcel pad within a larger anchored retail center. At purchase, the collateral was only 44% occupied. The Sponsors believe that a new leasing strategy will be able to drive tenants to the Center. The Property is located on one of the corners of a major intersection that sees over 65,000 cars per day and is less than two miles from Arizona State University, one of the largest universities in the country. The capital provider structured the financing to have a holdback for future property improvements, leasing costs, and interest payments. Priced at 30-Day LIBOR + 7.00%, the non-recourse loan was sized to 68% of total cost and carries a two-year term with extensions. The Lender was also able to include partial releases if only a portion of the collateral is sold.

    Rate: L + 7.00% (0.25% LIBOR Floor)
    Term: 2 Years with Two 6-Month Extensions
    Loan-to-Cost: 68% LTC
    Amortization: Interest Only During Initial Term
    Guaranty: Non-Recourse with Standard Carveouts

  • $3,700,000 Highly Leveraged, Quick Close Acquisition Capital for 97-Unit, Multifamily Property; Oklahoma City, OK

    September 22, 2021

    Transaction Description:

    George Smith Partners secured $3,700,000 for an acquisition of a multifamily property in Oklahoma City, OK. The Sponsor had the opportunity to purchase a well-located, value-add property in Oklahoma City. By utilizing a quick close loan, the Sponsor was able to negotiate a below market price. The Sponsor approached GSP to help arrange a loan that needed to close on a strict timeline of only one week. Because of the quick timing and the short-term distress in the cash flow, the Property would not qualify for bank or agency financing. The Property rents were below market because the Seller self-managed and the Property needs exterior and interior improvements. The loan was structured with a CapEx holdback to allow the Sponsor to implement their value-add strategy. The non-recourse facility represents 75% of total cost and was priced at an interest-only fixed rate of 7.25% with a 12-month term plus two 6-month extension options. The interest-only loan allows for more property cash flow to be used towards improving the Property. Thanks to GSP’s long-standing relationship with this debt fund, we were able to close this transaction in less than 7 days from signing the term sheet.

    Rate: 7.25%
    Amortization: Interest-Only
    Term: 1 Year + Two 6-Month extensions
    LTC: 75%

  • $15,400,000 Note-On-Note Financing for a Class-A, Self-Storage Facility; Major Southwest Metro

    September 22, 2021

    Transaction Description:

    George Smith Partners successfully arranged $15,400,000 in note-on-note financing for a newly constructed Class-A, self-storage facility in a major Southwest metropolitan market. The financing was obtained for a prominent national debt fund and proved extremely accretive, due to an attractive advance rate and pricing. GSP leveraged its extensive lending network and was able to identify a premier note-on-note lender with an extensive book of business in both the note-on-note space and credit facility space. The note-on-note Lender understood the strength of the debt fund platform it was financing and the strong underlying loan. The financing has the potential to grow into a larger credit facility for the debt fund and A-Note lender over time.

    All Terms Confidential

  • $9,542,000 Take-Out Refinance of Owner-User, Flex Creative Office & Warehouse; Los Angeles, CA

    September 15, 2021

    Transaction Description:

    George Smith Partners successfully arranged a take-out loan of $9,542,000 for a recently renovated, two-story, flex property just south of downtown Los Angeles. The total collateral consists of a 40,417 SF building and three separate surface parking lots totaling 86 spaces. The Sponsor, a repeat client, acquired the Property two years ago as part of a three-property portfolio that GSP arranged the financing for. Those proceeds were used to complete an adaptive reuse of this former industrial building into creative office and warehouse. The Sponsor moved its headquarters to this location and occupies over half of the space. The remaining units for lease attract tenants priced out of the more expensive downtown LA and Culver City areas.

    There were significant challenges during the construction period, including a total loss fire on one of the properties within the acquired portfolio, the impact of COVID-19 on the Sponsor’s businesses and a maturing loan with the acquisition lender. GSP leveraged its strong relationships and financing expertise to work out extension and repayment solutions with the existing lender while identifying a new capital source to provide favorable terms for owner-user financing. The loan amount turned out to be well above the acquisition price and renovation costs.

    Rate: 3.625% Fixed
    Term: 3 Years
    LTV: 65%
    Prepayment: None
    Guaranty: Full Recourse

  • 8 Day Close on an $11,000,000 Cash-Out Loan for a Spec Single Family Home; Southern California

    September 15, 2021

    Transaction Description:

    George Smith Partners successfully advised on $11,000,000 for cash-out financing for the completion of a high-end luxury home in Los Angeles, California. The loan retired a higher interest rate and was also closed before certificate of occupancy was issued. GSP was able to source a lender who understood the significant value of the home from day one, did not require an appraisal, was comfortable with the Sponsor’s ability to receive COO, did not require the Sponsor to holdback any interest in a reserve account and did not have a minimum interest due or require a prepayment penalty. The 12-month loan term was structured to provide the Sponsor with time and flexibility to obtain certificate of occupancy and sell the asset within the Sponsor’s timeline.

    Rate: 7.99%
    Term: 12 months
    Amortization: Interest Only
    Lender Fee: 1%
    Prepayment or Minimum Interest Requirement: None
    Legal/Loan Doc Fee: $425