Transaction Overview
George Smith Partners successfully arranged $6,100,000 of bridge financing across two self-storage loans: a $3,850,000 bridge loan for the acquisition of a 553-unit self-storage facility in the Tucson, Arizona market, and a $2,250,000 bridge loan for the cash-out refinance of a 455-unit self-storage facility in the Kern County, California market. The two loans closed one day apart with the same lender.
The Sponsor was acquiring the Arizona property on a 1031 exchange timeline and separately was pulling cash out on its free-and-clear California project to be redeployed into an active construction project. Both assets sat in non-primary markets that several lenders passed on. GSP marketed the two assets side by side, surfaced competing quotes, and sourced a single lender willing to price both at a fixed rate well inside the rest of the market. On the acquisition, GSP structured a future funding component, so the Sponsor is not paying interest on undrawn proceeds while it executes its business plan; on the refinance, GSP negotiated the minimum interest down.
