All Terms Confidential

Transaction Description:

George Smith Partners successfully secured $35,900,000 in construction takeout financing for a state-of-the-art industrial project located in the Austin, Texas MSA. The manufacturing, research and office facility is 130,000 square feet. Spanning a 103-acre site, the building offers an additional 93 acres of undeveloped, shovel-ready land, yielding a development potential of more than 1,000,000 square feet of light / heavy commercial and industrial use.

The financing recapitalized construction costs related to the facility development, and utility infrastructure improvements.

The Sponsorship team acquired the undeveloped site in 2019, a strategic parcel in a rapidly developing industrial corridor, and subsequently developed the Class A facility. In order to take out the construction financing, GSP was able to identify a local lender with the expertise to develop a credit profile that appropriately accounted for the startup’s long-term viability, while also understanding the significant value of the excess developable land in a high-growth micro market within the Austin MSA.

Rate: Floating at LIBOR+6.00% with floor of 6.65%
Term: 12 months + one 12-month extension
LTV: 85%
Debt Yield: 5.2%
Guaranty: Non-Recourse at Certificate of Occupancy

Transaction Description:

George Smith Partners secured $25,818,000 in proceeds for the cash-neutral bridge loan refinance of a 51-unit multifamily property in Los Angeles. The Lender provided proceeds of 85% of appraised value and underwrote to a 5.2% stabilized debt yield. The new loan refinances both the construction loan and the preferred equity that were part of the original financing. The loan is floating at LIBOR + 6.00% with a 6.65% floor.

At the time of financing the Property was 95% complete but still short of a temporary certificate of occupancy. In addition, the leverage on the loan precluded several lending sources from achieving the necessary proceeds. The Sponsor desired to completely pay off the original construction financing, which was originated at 85% loan to cost. Only a few lenders could get the requested leverage and the market quoted pricing in the high single digits. Lastly, Koreatown experienced Covid related collection issues which affected the rental underwriting. GSP provided rental and sales comps that proved out the strength of the market. As a result, the selected Lender became comfortable with the location and the Sponsor’s ability to lease up the new Property.

Advisors

Matthew Kirisits Director

Rate: 3.15% Fixed
Term: Three Years
Amortization: Interest Only
LTV: 65%
LTC: Not Applicable
DCR: 1.25 based on proforma expenses
Guaranty: Non-Recourse
Prepayment: 1,1,1

Transaction Description:

George Smith Partners placed the cash-out refinance of a recently renovated 10-unit Long Beach multifamily property. This asset was acquired less than 18 months prior to our Sponsor initiating a $1,000,000 ($100,000 per unit) reposition of the property. These upgrades allowed the complex to be re-leased at market rate rental terms. Our take-out capital, a local regional bank, acknowledged the tremendous value-add and sized to market rather than the Sponsors’ capitalization. Sized to 65% of “As Is” value and a 1.25 DCR, proceeds returned most of the cash equity invested. Our DCR was measured against the actual annualized rent roll at close although relied upon proforma operating expenses due to the recent reposition and lease-up. This permanent loan is fixed at 3.15% and is full-term interest only for the three years. A five-year term was also offered under the same rate although our Sponsor opted for a 1,1,1 prepayment schedule rather than the more expensive five-year option.