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.

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 Managing Director, GSP; President, AXCS Investments

Evan Kinne Managing Director, GSP; CEO, AXCS Capital

Jordan Lipton Vice President

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 Managing Director & Principal