FINfacts™ XXIV – No. 282 | August 25, 2021

MARKET RATES
Prime Rate 3.25%
1 Month LIBOR 0.09%
6 Month LIBOR 0.16%
5 Yr Swap 0.92%
10 Yr Swap 1.35%
5 Yr US Treasury 0.82%
10 Yr US Treasury 1.34%
30 Yr US Treasury 1.91%

RECENT TRANSACTIONS
$42,400,000 (80% LTC) Bridge Financing for a 26-Property Portfolio of Walmart Shadow-Anchored Shopping Centers; Located Throughout the Midwest and South

Rate: L + 5.05% (5.10% floor)
Term: 3+1+1
Amortization: 24-months I/O, 25-year amortization thereafter
LTV: 76% As-stable loan-to-value
Lender Fee: 1% in / 1% out (waived if CMBS exit through Lender)
Prepayment: 18-months minimum interest with pre-negotiated release provisions for each property and with open prepayment on certain assets identified prior to close
Guaranty: Non-recourse

Transaction Description:

George Smith Partners successfully placed $42,400,000 in non-recourse bridge debt financing, which funded 80% of total project costs for the acquisition and value-add business plan of an off-market, 26-property retail portfolio spread across 19 midwestern and southern states. Although financing retail value-add business plans during COVID is challenging, the portfolio is comprised of a diversified rent roll including 20% of gross potential rent derived from investment-grade tenants. Furthermore, each asset within the portfolio is shadow anchored by strong performing corporate owned Walmart grocery shopping centers.

GSP leveraged its lender relationships and capital markets expertise to source a lender who understood the business plan and product type, who was willing to invest the time and effort to underwrite a large retail portfolio spread throughout 19 different states, and in markets with average populations below 30,000; during COVID.

Advisors

Kyle Howerton
Senior Vice President
Portrait Michael Anderson-Mitterling
Senior Vice President
David Stepanchak
Senior Vice President
Portrait Robert Gallagher
Analyst
Portrait Saman Yazdi
Analyst
Heather Gonzalez
Closing Specialist/Executive Assistant

$23,000,000 Construction Financing for 117-Unit Multifamily Construction; Lansing, MI

Terms Confidential

Transaction Description:

George Smith Partners successfully advised on $23,000,000 in senior debt construction financing for a 117-unit multifamily transaction in Lansing, MI. This is the second financing arranged by GSP for the Sponsor and follows on the successful $44,500,000 financing GSP advised on. GSP successfully navigated the markets to identify and close with a lender that was comfortable with PACE financing layered in the capital stack. This multifamily project will offer studios, one and two-bedroom units with modern furnishings.

Advisors

Ed Steffelin
Senior Vice President
Evan Kinne
Senior Vice President
Miles Musalman
Senior Vice President
Portrait Blair Lewis
Analyst
Jordan Lipton
Analyst

$4,000,000 Permanent Loan on Mixed Use, New Construction in a Secondary Market; Temecula, CA

Rate: 3.75%
Term: fixed for 5 years
Prepayment: Open
LTV: 53% Loan-to-Value
Guaranty: Full Recourse

Transaction Description:

George Smith Partners successfully secured $4,000,000 in permanent financing for a mixed-use retail and office property in the heart of Old Town Temecula, California. The recently constructed 16,046 square foot property was recently leased to two restaurant tenants and one office tenant. Loan proceeds were used to retire existing, maturing construction debt and provide cash out for the Sponsor. The sub-4% fixed-rate loan is prepayable at any time without penalty.

The Deal presented several challenges. While the ground floor restaurant had technically been in place for several months, it had limited operating history due to Covid 19 restrictions prohibiting indoor dining. The second-floor restaurant, a locally owned start up concept, opened their doors after loan closing and had no operating history.

GSP was able to source a lender who understood the strength of the Downtown Temecula market and was able to get comfortable with the product type and lack of operating history.

Advisors

Scott Meredith
Senior Vice President
John Thrall
Assistant Vice President

SPEAKERS CORNER

Patrick O’Donnell, Vice President at George Smith Partners will be speaking at the Interface Phoenix Multifamily conference (in person) on September 13th at the Hilton Scottsdale Resort from 12:30 pm – 4:30 pm.

Register Here: https://web.cvent.com/event/d71052d1-607a-4ef8-86e4-3e1b38e78f0b/regProcessStep1


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


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