Finfacts XXIV – No. 422

Transaction Description: 

George Smith Partners has successfully facilitated the procurement of $8.75 million in preferred equity for a Sponsor’s acquisition of a 250-unit garden-style apartment property in Winston-Salem, NC. 

The team collaborated with a preferred equity provider that demonstrated a strong understanding of the market and Sponsor’s value-add business plan. The negotiations resulted in a preferred equity slice at a detachment point of 83% of total project cost. This mutually beneficial agreement showed the confidence both parties had in the assets’ value and post-renovation prospects. The capital provider exemplified their capacity to structure flexible pricing (current vs PIK) and a willingness to upsize to satisfy the deal’s evolving capital needs and structure.    

The Sponsor, represented by the GSP team, has significant experience in North Carolina, although new specifically to the Winston-Salem submarket.