A replay of the webinar, “The Workout of Distressed Properties” is available here: https://www.youtube.com/watch?v=cZieEjm6cz0&t=2029s

In this webinar, you will hear about the remedies and opportunities available to property owners, venture partners, and lenders.

Malcolm Davies | George Smith Partners

Alan Martin | Sheppard Mullin

Doug Wilson | Doug Wilson Companies

Gary London | London Moeder Advisors

George Smith Partners is currently placing non-recourse financing for multifamily (including MHC and student), office, self-storage, mixed-use and industrial properties nationwide. This lender currently offers up to 75% of total costs and 70% of stabilized value. They focus on middle market transactions offering loan amounts from $10,000,000 to $50,000,000 (will selectively lend on larger transactions) with terms up to five years. The Lender offers competitive LIBOR-based pricing with flexibility on lockout/yield maintenance period. They are a balance sheet lender that does not leverage their positions with CLO’s, warehouse lines, or REPO facilities which ensures certainty of execution and aligned asset management. The lender is capitalized by institutional investors.

Today’s Fed meeting and subsequent statement from Fed Chair Powell spelled out a major change in Fed Policy that has been discussed this year: allowing inflation to “run” at or above their long stated 2% target without immediately raising rates. The old guidance, first announced in 2012, was that the Fed was targeting inflation rising to 2% or unemployment dropping to 5% and would increase rates if those thresholds were met. The “old normal” of pre-Great Recession economic theory was that crossing those thresholds meant that an overheating economy would spur inflation (see early 80’s Volker era). As the last decade has given way to the “new normal” whereby ultra low unemployment and interest rates has not resulted in inflation. The Fed is now saying that inflation can go to 2% and above for a while. Today’s statement “(The Fed) will aim to achieve inflation moderately above 2 percent for some time so that inflation averages 2 percent over time and longer-term inflation expectations remain well anchored at 2 percent.” And when does the Fed see inflation running consistently at 2%? According to their forecast released today, it won’t be until well into 2023 at the earliest. Allowing for “run-time”, this puts the next “lift-off” of rates into 2024. Powell indicated that “highly accommodative” policy (zero rates, bond purchases, etc) “until the economy is far along in this recovery”. It begs the question, when will inflation return and what will it look like in this era? Powell also said that a “closely trusted” vaccine is critical to the economic recovery and that the Fed is not “out of ammo” as far as tools to aid the recovery. So, stimulative monetary policy is a given in today’s world. What about the more difficult issue of stimulative fiscal policy, which requires consensus in Washington? Today was the most optimistic day for months in that regard as the Administration and Congress leaders both signaled lots of common ground complete with conciliatory rhetoric, let’s see what tomorrow brings. Stay tuned. By David R. Pascale, Jr. , Senior Vice President at George Smith Partners

“Commercial Real Estate: “Parsing The Product Types – Six Months Into The Pandemic”

By: David Pascale

Published in Forbes.com

The Commercial Real Estate ACRE +4.4% capital markets came to a shuddering halt in March of this year as the COVID-19 pandemic shutdowns shocked society and the economy. The sudden halting of businesses, schools and nearly all aspects of life were unprecedented, stock and credit markets crashed worldwide. Commercial real estate fundamentals plummeted, and capital markets froze…

Read the full article here: https://www.forbes.com/sites/dpascale/2020/09/14/commercial-real-estate-parsing-the-product-typessix-months-into–the-pandemic/#81b92242aea1

If you have an inquiry regarding George Smith Partners’ commercial real estate financing, please contact your GSP representative or Todd August, Chief Operating Officer at (310) 867-2995 or taugust@gspartners.com