Rate: 3.88% Fixed as a result of a SWAP
Term: 7 Years
Amortization: 2 Years of Interest Only; Followed by 30 Years
LTV: 65%
Prepayment: None except for SWAP Breakage
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners secured $8,350,000 in non-recourse permanent bank financing for a 44,000 square foot medical office property in Tampa, Florida. Although the Property was only 86% leased at closing, the Sponsor required non-recourse, permanent financing from a portfolio lender and was not open to a CMBS execution. For tax purposes, the Sponsor also required a lender that would not require a new single purpose borrowing entity. After an extensive marketing effort, GSP sourced a bank lender that specializes in financing healthcare related properties. Sized to 65% of value, the 7-year execution carries a fixed rate of 3.88% as a result of a SWAP executed by the bank at application at no additional cost to the Sponsor. In addition to being non-recourse, the loan structure offers two years of interest only followed by a 30 year amortization (as opposed to a 25 year amortization, which is more common for a commercial, non-multifamily property). The loan carries no prepayment penalty apart from SWAP breakage.

Advisors

Evan Kinne Managing Director, GSP; CEO, AXCS Capital

Rate: P+4.0% w/10% Floor
Term: 12 months
Recourse: Carve-Outs Only
Fees: 1.0%
Prepayment: Six-month minimum yield; no exit fee: P+4.0% w/10% Floor

Transaction Description:

George Smith Partners placed a cash-out $8,250,000 non-recourse loan for the partnership recapitalization of an entitled parcel in Van Nuys which is located in the San Fernando Valley of Los Angeles, CA. The Sponsor has been working through the permitting process for residential development. GSP identified a non-institutional lender who underwrote the business plan assuming a sale to a related entity upon ready-to-issue (RTI) permits. Their exit will come in the form of the pre-arraigned Joint Venture funding and a to-be-identified construction lender. Excess proceeds were utilized to buy-out an LP investor and recapitalize the Borrower and carry costs through to RTI. The non-recourse loan will float for the 12-month term at Prime + 4.0%. There was no appraisal, or Phase I report required for funding.

Advisors

Matthew Kirisits Director

Rate: 4.30%
Term: 7 Years Fixed, 30 Year Term
LTV: 65%
Amortization: 30 Years
Prepayment Penalty: 3, 2, 2, 1, 1 with nothing after the 5th year
Lender Fee: None

Transaction Description:

George Smith Partners successfully arranged a cash-out permanent refinance of a 7-unit multifamily property in North Hollywood, California. Loan proceeds were used to pay off the existing variable, higher interest rate loan and allow the Sponsor to obtain a lower interest, fixed rate loan. The equity also allowed the Sponsor to complete upgrades to the Property including roofing, flooring and various other deferred maintenance. GSP targeted a capital provider who is active in the multifamily segment and could maximize loan proceeds for the Sponsor in order to finish the Property upgrades.