Rate: 4.73% Fixed
Term: 7 Years
Amortization: Two Years Interest Only; 30 Years Thereafter
Loan-to-Value: 60%
DCR: 1.35
Recourse: Carve-Outs Only
Prepayment: Loss of Yield
Loan Fee: 0.50%

Transaction Description:

GSP placed the $22,367,000 non-recourse cash-out permanent loan for 200 stabilized units in a secondary California market. This represented a substantial return on equity. Loan proceeds were increased post application as the supportable underwritten net cash flow improved during the due diligence process. Occupancy constantly operated at 98% with future increases forecasted at unit turn. Fixed for seven years at 4.73%, the non-recourse loan is interest-only for two years prior to amortizing over 30 years for the balance of the term.

Advisors

Matthew Kirisits Director

Rate: L+425
Term: 3 Years + Two, 1-Year Extensions
Amortization: Interest Only
LTC: 75% LTC
Prepayment: 18 Months Yield Maintenance
Lender Origination Fee: 1.0%
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners secured $8,400,000 of bridge financing for the lease-up of a two-tenant retail center located in Greeley, CO. The Sponsor recently leased a 50,000 square foot space to a national fitness center. The new 10-year lease, which has a corporate guaranty, required a large tenant improvement package. Loan proceeds will be used to refinance the existing loan and fund leasing costs without requiring the Sponsor to bring in any additional equity. The other tenant at the center, a national specialty retailer, agreed to extend their lease term to 10 years concurrently, eliminating any rollover risk. GSP found a capital source that understood that the tenants are uniquely positioned to serve the market, allowing the Lender to get comfortable with the completed value of the center. The non-recourse financing was sized to 75% LTC and priced at One Month LIBOR + 4.25%.

Advisors

Steve Bram Managing Director & Principal / GSP Co-Founder

Rate: 9.25% Fixed
Term: 2 year term with Two, 6-month extension options and 50 bp extension fee
Amortization: Interest Only
Loan to Value: 68% max LTV “as complete”
Loan to Cost: 75%
Yield Maintenance: 24 months
Loan Fee: 1%
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners arranged $4,235,000 of acquisition/bridge financing for a 19 unit residential mixed-use property in Santa Barbara, CA. The Property, originally constructed as a 10 unit apartment building in 1951, was converted to mixed-use with a second and third floor office and residential penthouse addition in 1973. The change in use was a response at the time to demand for office given the Property’s close proximity to the popular State Street retail corridor just a block away. The Borrower plans to seek approval to convert the 1973 office addition portion of the project back to residential use and lease all but two front commercial units with long term leases. The challenge was finding a Lender that could underwrite the business plan and get comfortable with take-out financing of this mixed-use residential/office project. GSP was successful in identifying a lender that could get comfortable with the uncertainty of the Borrower’s ability to convert the project to mostly residential.