Rate: 3.01%
Term: 10 Years
LTV: 65%
Amortization: Seven Years Interest Only; 30-Year Amort Thereafter
Guaranty: Non-Recourse

Transaction Description:

George Smith Partners arranged $15,800,000 in permanent financing secured by a 47-unit garden-style, multifamily property located in Torrance, CA. The non-recourse loan carries a 3.01% fixed rate for 10 years with 7-years of interest only payments. The recapitalization provided significant cash-out to the Sponsor and reduced their previous interest rate considerably.

The Property had recently undergone an extensive renovation program and had limited seasoning on the new, higher rental rates achieved on the repositioned units. The Property did however, maintain stable occupancy and collections throughout 2020 despite COVID-19 regulations in California allowing tenants to defer rent payments.

Amidst a time of market volatility and economic uncertainty, GSP was able to leverage market interest to secure the most competitive terms available by focusing on the desirable location as well as the Sponsor’s track record and familiarity with the asset.

Rate: 3.625% fixed
Term: 10 Years
Amortization: 25 Years
LTV: 70%
DCR: 1.20
Loan Fee: 1 Point
Reserves: None
Impounds: None
Prepayment Penalty: None
Recourse: Repayment Guarantee

Transaction Description:

George Smith Partners placed the cash-in refinance of a net-leased single tenant office building located in a secondary Milwaukee metro-market. Although currently leased to one user, the asset is easily divisible should the tenant choose to exercise their early termination clause in 18 months. Our Portfolio Capital Provider mitigated this event risk in two ways. First, by underwriting the need of the current tenant to operate from this specific single tenant building and second, our Sponsors’ 15% additional capital contribution at close. A personal repayment guarantee was used in place of all escrows, reserves, cash flow sweeps and hold-backs. The tenant continued to operate from this location in a reduced capacity throughout Covid. The 10-year term is fixed at 3.625% and amortizes over 25 years. The net-lease was underwritten to preclude any tax or insurance impounds while this tenant is in occupancy.

Rate: 3.80% fixed
Term: 5 yrs
Reserve: No payment reserve
Amortization: 30 years
Prepayment Penalty: 3,2,1
LTV: 40%
Guarantee: Non-Recourse
DCR: 1.30x

Transaction Description:

George Smith Partners secured a refinance loan for a three-story office building located on the Sunset Strip in West Hollywood. The loan is fixed at 3.8% and has a stepdown prepay that becomes 0% after 3 years.

The Sponsor is holding the Property for redevelopment and required a flexible loan with a low interest rate. The Property receives more than half of its income from a cell tower site and a rooftop billboard. Most lenders would not include this income because the leases have cancellation clauses, but the selected Lender agreed to include it. They also provided a prepayment structure that aligns with the timing of the Sponsor’s business plan. As a result, the loan can be paid off with no prepayment penalty once entitlements are secured for the redevelopment project.

Advisors

Matthew Kirisits Director