SENIOR DEBT
Rate: 3.75%
Term: 4 years
LTC: 70%
Guaranty: Recourse

EQUITY
80% JV & 20% Co-GP Equity

Transaction Description:

As the leader in the rapidly emerging Single Family for Rent (SFR for Rent) and Build-to-Rent (BTR) multifamily asset classes, George Smith Partners worked with our client to structure an optimal structure for the development of the 130-unit project located in Fort Meyers, FL. Throughout the year-long engagement, GSP and the Sponsorship secured various investment structures including multiple Co-GP, LP, Pref, and Senior construction facilities, ultimately structuring a high leverage 70% recourse loan and a full equity structure of 80% LP + 20% Co-GP.

With the intention of securing platform participants, the chosen structure will allow for a rapid expansion of the portfolio on a favorable deal by deal basis. The Sponsorship plans to scale with their partners to an additional 600 units in the next 12 months to meet the rapidly growing need for housing across Florida. The platform investment will also provide the opportunity to grow into other high growth markets across the south and east coasts.

Advisors

Ed Steffelin Managing Director, GSP; President, AXCS Investments

Evan Kinne Managing Director, GSP; CEO, AXCS Capital

Rate: 10%
Term: 18 Months
LTV: 50%
Guaranty: Non-Recourse with Bad Boy Carveouts
Fee: 3%

Transaction Description:
George Smith Partners successfully placed a $4,680,000, 50% LTV loan to fund the acquisition of a 6.9-acre parcel of land located in North County, San Diego, California, and the funds needed to finalize the entitlements for 135 paper lot townhome subdivision.

When GSP became involved, the Borrower had already invested over $2,300,000 to secure a tentative map and development agreement while the land was under option. However, there were only ten days remaining on the purchase contract when the land lender with whom the Borrower had been dealing with directly, declined to proceed. When the Seller refused to grant the Buyer an extension on the purchase escrow, GSP was engaged to arrange the land acquisition financing to enable a timely closing.

GSP had several highly reliable alternative land lenders that could close within ten days. Strategically, GSP selected a lender that was not only willing to finance the land acquisition and final entitlements, but also was willing to give the Sponsor a strong indication that they would favorably consider funding the future stages of the project, including the grading, horizontal land, and infrastructure development as well as the vertical construction financing once the final map was achieved in approximately nine months.

Advisors

Gary M. Tenzer Managing Director & Principal / GSP Co-Founder

Rate: 5.50%
Term: 24 Months, One 6 Month Extension
LTV: 75%
Prepayment: None

Transaction Description:
George Smith Partners arranged $3,500,000 in land pre-development financing for Phase II of a multifamily development project. The vacant lot will be developed into 92 workforce housing units located in the Koreatown area of Los Angeles, CA. The Sponsor is addressing the need for workforce housing in this area. GSP utilized a unique capital source to arrange highly favorable and flexible capital to allow the Sponsor’s long-term plan of developing workforce housing communities within Los Angeles. The loan represents 75% of the pre-development soft costs to bring the Project to permit-ready status. This is the second phase of the land development. The interest-only land loan was priced at 5.50%, with a 24-month term and one 6-month extension option. The extension option gives flexibility to the Sponsor should they be unable to pull permits within 24 months. There is additional flexibility with the loan structure with no prepayment penalty. Despite being on a strict closing deadline, GSP was able to identify a lender who could execute on terms and close within 30 days.