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Financings

  • Refinance for a 2,738 SF Retail Building; Echo Park, CA

    August 17, 2022

    Transaction Description:

    George Smith Partners successfully advised on the refinance of a 2,738 SF high-street retail building located in Los Angeles, CA. The senior loan proceeds totaled $2,500,000 of non-recourse financing, which is approximately 70% loan-to-value. Due to the strategic advising of GSP, the Sponsor was able to obtain a fixed rate loan despite the building being 100% vacant.

    The Sponsor achieved a fully executed lease from a cannabis use tenant however, the prior mortgage did not permit cannabis use. GSP identified a cannabis-friendly lender that could close in accordance with the Sponsor’s business plan. Additionally, the Property was encumbered by a loan that included neighboring parcels as collateral. The new loan allowed the Sponsor to release the property from the prior mortgage and capitalize on the newly signed lease.

    Rate: 7.75%
    Term: 6 Months
    LTV: 70%

  • $6,850,000 Multifamily, Cash-Out Refinance; Los Angeles, CA

    August 10, 2022

    Transaction Description:

    George Smith Partners secured $6,850,000 for the refinance of a stabilized 58-unit Los Angeles apartment building. The loan is fixed at 4.15% for five years and has full-term interest-only payments. The Lender offered a 60-day rate lock, which provided a great benefit to the Borrower because interest rates increased while the loan was in application. A fast-paced closing process was required to keep the rate locked at 4.15%. GSP ensured that all stakeholders adhered to the timeline and that the loan successfully closed on the required date. There were no changes to the term sheet.

    Rate: 4.15% Fixed for 5 years; 30-Day Average SOFR + 2.35% Thereafter
    Term: 30 years
    Prepayment Penalty: 3, 1, 1, 1%
    LTV: 55%
    DCR: 1.20x
    Origination Fees: Par

  • $9,907,500 Financing for Beneficial Treatment Center; San Francisco, CA

    July 27, 2022

    Transaction Description:

    George Smith Partners successfully arranged a $9,907,500 loan for a very special project in San Francisco that provides huge benefits to the City and the Community. Utilizing our relationship with a community development lender, GSP was able to secure a 3.5% interest rate, 10 year loan, for a drug-free rehab facility in the South of Market (SoMa) area of San Francisco. The Facility aims to transform the lives of the surrounding community with help from the City. The Project was a vacant hotel with shared bathrooms, bordering some of the roughest areas of San Francisco. Most lenders passed on the project, but because of GSP’s experience with SRO properties, we were able to negotiate a below market rate for 10 years to enable the Project to move forward.

    The loan allowed for the rehab and redevelopment of an old SRO (Single Room Occupancy) tourist hotel with shared baths into the updated 80 room facility, which included new private bathrooms in each unit. It is great to not only successfully close a difficult loan, but to see the way the Sponsor was able to transform lives and solve community challenges.

    The Project will house people who are struggling with substance use from the streets to a safe place indoors. They can access clean bathrooms, showers, food, and a place to rest. Afterwards, the staff can help participants connect with medical care, mental health, substance use, and housing services. The Center was designed to improve safety for both participants and neighbors by creating a safe place for people experiencing a drug related crisis.

    Rate: 3.5%
    Amortization: 30 Year
    Term: 10 Years
    LTV: 80%

  • $10,000,000 Permanent Financing for Two Mixed Use Properties; Hollywood, CA

    July 13, 2022

    Transaction Description:

    George Smith Partners successfully placed a $10,000,000 loan with a 5-year fixed interest rate for two mixed-use properties located in Hollywood, CA. The ground floor retail for both properties has short-term roll and is in need of renovation. The financing provides significant cash-out, which the Sponsor will use to improve the Properties and to re-tenant the buildings with new, long-term, market rate leases. GSP sourced a lender that was able to provide cash-out financing, limited recourse that burns off at full stabilization and lock the rate at application – critical in this current volatile interest rate environment.

    Rate: 5.25% Fixed
    Term: 5 Years
    Amortization: 3 Years IO, 27 Year Amortization Thereafter
    LTV: 65%
    Prepayment: 5, 4, 3, 1, 1%
    Guaranty: 25%, Burning Off at Full Stabilization
    Lender Fee: None

  • CO-GP Joint Venture for a 207-Unit Multifamily Ground-Up Construction Project; Denver, CO

    July 6, 2022

    Transaction Description:

    George Smith Partners successfully advised our client to create a $2,520,000 Co-General Partner Joint Venture for a 207-unit multifamily ground-up, modular construction project in Denver, Colorado. The relationship created by GSP combines an investment team with a strong financial institutional backing with a sponsorship team of well-established development experts, into a general partnership team taking on a project in one of the fastest-growing markets in the country.

    The Denver metropolitan area is expected to add roughly 216,700 new residents over the next five years, fueled by the expansions of the Denver International Airport and Fitzsimons Medical Campus. The Project is expected to fulfill an underserved workforce demographic by offering an affordable yet high-quality option. The Project will feature a rooftop deck with BBQ grills, outdoor games, playgrounds, sports courts, picnic areas, a dog run, gym, state-of-the-art security systems, bike parking, package storage, and a mail center with full-time onsite management and maintenance. The Project will be constructed modularly, thereby saving on costs and time. Modular projects can be developed in half the time as traditional construction, with approximately 60% – 90% of construction performed inside a factory while site work is simultaneously completed.

    The investment was paired with a bridge loan to close on the land, complete the working drawings and complete all the pre-development work. The Project is estimated to break ground in Q1 of 2023. To close, GSP will assist in obtaining a construction loan and LP Equity.

    Terms Confidential 

  • Perm Financing for a Multifamily Property; Houston, Texas

    June 29, 2022

    Transaction Description:

    George Smith Partners secured permanent financing for an eight-unit multifamily property located in Houston, Texas. The loan is fixed at a rate of 4.00% and locked in for 7 years. The deal went into application during the Fed run-up in rates and the rate was never locked. However, due to GSP’s relationship with the Lender, we were able to hold the rate and term down substantially. The financing does not require any deposit relationship with the bank and did not require any funds to be held back for reserves. The Lender’s processing/application fee was $2,000 all in.

    Rate: 4.00%, Fixed for 7 Years
    Term: 30 Years
    Amortization: 30 Years
    LTV: 70%
    Prepayment: 5, 4, 3, 2, 1%
    Depository Relationship: None Required

  • $6,100,000 Perm Financing for an Unanchored Retail Property; Bakersfield, CA

    June 22, 2022

    Transaction Description:

    George Smith Partners successfully closed a loan at 60% loan-to-value for an 84% occupied, newly built, and stabilized retail center in Bakersfield, CA. GSP located a lender that was able to lock the rate of 4.125% at application to avoid the rate volatility in the market. Many lenders were not comfortable quoting the deal because of the lack of operating history. GSP was able to locate a lender that was comfortable with the lack of history, with a 6-month debt service reserve held back at closing, to ensure that the tenants continue to pay rent. The reserve is released after 6 months of full rent collection.

    Rate: 4.13%
    Term: 7 years
    LTV: 70%
    Amortization: 1 Year IO, then 25 Year Amortization
    Prepayment: None
    Fee: None
    Guaranty: Full Recourse

  • Perm Loan Debt for Two Multifamily Communities; San Diego, CA

    June 15, 2022

    Transaction Description:

    George Smith Partners secured permanent financing for two newly renovated/repositioned Class C apartment communities in San Diego. Two separate loans were originated for the same Sponsor for the 14-unit and 5-unit multifamily communities.

    The Properties were in the process of being completed and leased when the Borrower went under application with a bank. Despite the longer than normal application process and rising interest rate environment, GSP was able to get the bank to extend the rate lock and obtain a favorable coupon.

    Rate: 3.30% Fixed for 7 Years, Floating Thereafter at S+2.25%
    Term: 30 Years
    Amortization: 3 Years Interest-Only
    LTV: 70%
    DSCR: 1.20x
    LTC: 85%
    Guaranty: Non-Recourse

  • Acquisition Financing of a 50% Vacant Multifamily Property; 4.25% Rate, 35 Day Close; Los Angeles, CA

    June 8, 2022

    Transaction Description:

    George Smith Partners arranged bridge-to-perm financing for the acquisition of a multifamily property located in the Beverly Grove area of Los Angeles, California. The Property was 50% vacant and in need of renovation at the time of close. GSP matched the Sponsor with a lender who could provide the flexibility of a bridge-to-perm loan with a 5-year term, of which the first 24 months would be interest-only to account for the renovation and lease-up period.

    Despite today’s high-interest rate market, GSP was able to secure a floating rate at PRIME + 0.25% (4.25% as of today). The market usually caps this kind of structure with a below-market rate at 65%-70% LTV, but GSP was able to leverage its relationships to secure 75% of the purchase price for the Sponsor. The loan has no prepayment penalty, allowing for additional flexibility for the Sponsor. The Borrower was in a 1031 exchange and only had 45 days to close from the time the deal was brought to GSP. GSP quickly identified a bank lender, entered into application, and closed the transaction in just 35 days.

    Rate: Prime + 0.25% w/ floor of 3.75%
    Term: 5 Years
    Amortization: First 2 Years Interest-Only
    LTPP: 75%
    DCR: 1.10x
    Prepayment: None

  • Cash-Out Refinance with LifeCo for Unflagged Boutique Hotel; Tucson, AZ

    June 1, 2022

    Transaction Description:

    George Smith Partners secured permanent financing for an unflagged, 90-key, boutique art hotel in Tucson, AZ. The Sponsor acquired the Property in 2017, and completed a full renovation and rebrand in 2018, primarily with cash. The Hotel performed extremely well prior to the pandemic. While revenue and NOI declined, along with most hospitality assets during that time, the Property has since recovered to and exceeded pre-pandemic levels. Despite the Property being unflagged and located outside downtown Tucson, GSP was able to leverage its strong lender relationships to source CMBS and Life Insurance Company quotes. The Sponsor ultimately chose a LifeCo lender who offered a combination of low rate, longer amortization, prepayment flexibility, and potential to increase proceeds during the loan term.

    Rate: 4.59% Fixed for 5 Years
    Term: 15 Years (5+5+5)
    Amortization: 27 Years
    LTV: <40%
    Guaranty: Partial Recourse

  • Acquisition Loan for a 15-Unit Multifamily Property; 3.54% Fixed; 72% LTV; Houston, Texas

    May 25, 2022

    Transaction Description:

    George Smith Partners secured permanent financing for a 15-unit multifamily property located in Houston, Texas. The financing is fixed at 3.54% for 5 years. The deal went into application right before the Federal Reserve increased rates and before we experienced a run-up in treasuries. GSP’s good standing with the Lender ensured the original terms were honored until closing, notwithstanding the loan extension that took place and the rapid increase in the interest rate environment. The financing does not require any deposit relationship with the bank or any funds to be held back for reserves. The Lender’s processing/application fee was $2,000 and they had no origination fee.

    Rate: 3.54%, Fixed for 5 Years
    Term: 30 Years
    Amortization: 30 Years
    LTV: 72%
    Prepayment: 4, 3, 2, 1%
    Depository Relationship: None Required

  • Acquisition Bridge Loan for a 12-Unit Multifamily Community; San Diego, CA

    May 18, 2022

    Transaction Description:

    George Smith Partners secured an acquisition bridge loan for the repositioning of a Class-C apartment community in San Diego. The financing includes a holdback that will be used to renovate both the interior and exterior of the Property over a 12-month period including the addition of a single ADU (garage conversion).

    Given the Sponsors’ track record and their successful ability to substantially increase rents in this niche market, GSP was able to secure a Lender that could close quickly (within 25 days), without an appraisal, and allow a $1,000,000 2nd TD up to 98% of the total cost of the Project to accommodate an additional private party investment in the Property.

    Rate: 7% Fixed
    Term: 18 months + 6-month extension
    Min DSCR: 1.15:1.0
    Origination Fee: 1.5%
    Amortization: Interest-Only
    Guaranty: Recourse
    Prepayment: None